fostering a new industry - rusnano€¦ · nomic potential. rusnano’s mission ... ufa, republic...

Fostering a new industry

FOSTERING A NEW INDUSTRY 1

RUSNANO and the Fund for Infrastructure and Educational Programs are state instruments dedicated and empowered to fostering the growth of the nanotechnology industry in Russia.

RUSNANO carries out its charge through commercial mechanisms, by co-investing in nanotechnology projects with substantial eco-nomic potential. RUSNANO’s mission is to build a competitive nano-technology industry based on the advances of Russian scientists and the transfer of cutting-edge technologies from other countries. The

Fund for Infrastructure and Educational Programs supports develop-ment of infrastructure to enable nanotechnology innovation in the country.

RUSNANO and the fund are charged with stimulating growth of the country’s nanotech industry so that annual sales of nano-enabled products reach 900 billion rubles (about $30 billion) in 2015. RUSNANO portfolio companies are to contribute 300 billion rubles (about $10 billion) through product sales.

RUSNANO FUNd FOR INFRAStRUctURe ANd edUcAtIONAl PROgRAmS

A business entity A non-commercial organization

Investment projects Infrastructure for innovation

• Initiating and selecting

• Business structuring

• Cofinancing

• Developing, monitoring, and control

• Nanotechnology centers and engineering companies

• Standardization, certification, metrology

• Education

• Improving legislation

• Popularizing nanotechnology

FOSTERING A NEW INDUSTRY 32 FOSTERING A NEW INDUSTRY

By structuring a business model for its investment projects, by in-vesting its financial resources and attracting the resources of private investors to its projects, RUSNANO is helping to transform scientific developments with commercial potential into full-fledged business-es that will improve the economy of the country and contribute to better lives on the planet.

The company invests in a wide array of projects: alternative energy, biomedicine, new materials, mechanical engineering, and metalwork

to name a few. For entrepreneurs with the right ideas and the skills and vision to carry them through, funding is available to manufacture new products or to broaden and modernize existing production.

In order for a proposed project to win approval for co-investment, it must meet several criteria:• Technical feasibility and economic viability• Offer a product or products directly related to nanotechnology • Willingness to locate manufacturing and/or R&D center in Russia• Reliably forecasted sales of 250 million rubles ($8.5 million) or

more within five years from initiation

RUSNANO employs various forms of investment with its portfolio companies: investment in owners’ equity, loans, credit guarantees, and leasing operations. Part of project costs must be privately financed through owners’ equity and other investment mechanisms.

RUSNANO’s system for selecting projects encompasses analysis of the competitiveness of proposed products in Russian and global markets. Many projects approved for co-investment have developed proprietary technology to produce products at the world-class level.

Here are only a few examples of the innovative projects of RUSNANO’s portfolio companies, offering products that surpass global analogues on technical, economic, and consumer characteristics.

RUSNANO’S INVeStmeNt ActIVItIeS

• Vaccines based on virus-like particles. Incapable of reproduction, the particles serve as containers for delivering genes of proteins that induce a desired immune response. Technology for the vac-cines was developed at the Gamaleya Institute of Epidemiology and Microbiology, the Research Institute of Influenza, and other leading research institutes in Russia.

• Magnetoresistive random access memory based on Thermally As-sisted Switching™ developed by Crocus Technology. TAS MRAM offers unlimited endurance, non-volatility, and fast read/write per-formance, combining benefits of well-established semiconductor memories, such as DRAM, SRAM, and Flash without their limita-tions. Crocus has gone beyond establishing production in Russia. The company plans to invest up to $5 million in Russian research organizations that will refine the technology.

• Detectors of explosives and illicit substances using tagged neu-tron technology developed at the Joint Institute for Nuclear Re-search. The detectors, which come in forms for scanning luggage, vehicles, and cargo containers, work by identifying the elemental composition of substances, not by the usual density scanning of

By structuring a business model for its investment projects, by investing its financial resources and attracting the resources of private investors to its projects, RUSNANO is helping to transform scientific developments with commercial potential into full-fledged businesses that will improve the economy of the country and contribute to better lives on the planet.

PROJECT REqUIREMENTS: • TECHNICAllY FEASIBlE• COMMeRCIAlly vIAble• NANOteCh RelAted• RUSSIA bASed• SAleS Of $8.5 MIllION

RUSNANO’s mission is to build a competitive nanotechnology industry based on the advances of Russian scientists and the transfer of cutting-edge technologies from other countries.

X-ray technology. Detectors that use tagged neutrons have been placed in metro and railway stations as part of a Russian federal program for transportation safety.


RUSNANO’s investment activities are conducted by six business units. each is a team of highly qualified specialists – investment managers, analysts, lawyers, technology experts in various fields – led by a managing director. The units review applications that RUS-NANO receives and independently attract projects for financing. They carry out comprehensive analyses of applications and, where projects meet RUSNANO’s criteria, the teams defend them before the Executive Board or the Board of Directors of RUSNANO. Once approval for cofinancing is granted, the teams conduct and control the projects throughout their investment cycle.

RUSNANO’S INVESTMENT ACTIVITIES ARE CONDUCTED BY SIX BUSINESS UNITS. EACH IS A teAM Of hIghly qUAlIfIed SpeCIAlIStS –INVESTMENT MANAGERS, ANAlYSTS, lAWYERS, teChNOlOgy expeRtS IN vARIOUS fIeldS – led by A MANAGING DIRECTOR.

between 2010 and the end of the first quarter of 2012, RUSNANO’s portfolio companies commissioned 20 factories manufacturing na-notechnology products:

FActORIeS lAUNched IN Q1 2012

March 2012 Production of highly sensitive metal RFID tags and RFID labels for passive RFID systemsPortfolio company: RST-Inventlocation: St. Petersburg

February 2012 Production of high thermal conductivity substrates for ultrabright lEDs and other electronic devices using proprietary AlOX technology Portfolio company: RUSAlOX (formerly MClR)location: Vladimir

February 2012 production of modified layered nanosilicates, masterbatches, and polymer nanocomposite materialsPortfolio company: METAClAYlocation: Karachev, Bryansk Oblast

February 2012 Production of 90-nm microchips and an accompanying R&D facilityPortfolio company: SITRONICS-Nanolocation: Zelenograd

RUSNANO’S BUSINeSS teAmS PROject FActORIeS

FActORIeS lAUNched IN 2011

December 2011 Production of innovative sensors for industrial safety systemsPortfolio company: OptoSenselocation: St. Petersburg

December 2011 Production expansion for measuring and analytical instruments for research and industrial applications in materials science, biology, and medicine Portfolio company: Advanced Technologies Centerlocation: Moscow

December 2011 Production of colloidal quantum dots Portfolio company: Nanotech-Dubnalocation: Dubna, Moscow Oblast

December 2011 Production of gallium arsenide wafers, vertical-cavity surface-emitting lasers, and photodetectorsPortfolio company: Connector Opticslocation: St. Petersburg

December 2011 Production of high-capacity lithium-ion batteries Portfolio company: liotechlocation: Novosibirsk

December 2011 Network of centers for deposition of nanostructured protective coatingsPortfolio company: Plakartlocations: Scherbinka, Moscow Oblast, and Nizhny Novgorod

November 2011 Vertically-integrated production of germanium-based products for optical- and nanoelectronic equipment Portfolio company: Germanium and Applicationslocation: Novomoskovsk, Tula Oblast

November 2011 production of prepregs based on nanomodified carbon and mineral fibers and nanomodified binding materialsPortfolio company: Prepreg-SKM location: Moscow

November 2011 production of high-barrier polymer film and flexible packaging materials Portfolio company: danaflex-Nanolocation: Kazan, Republic of Tatarstan

October 2011 production of flexible packaging materials modified with nanocompositesPortfolio company: Uralplastic-Nlocation: Yekaterinburg, Sverdlovsk Oblast


August 2011 Production of abrasion-resistant parts from nanostructured ceramics and metal-ceramic materials Portfolio company: VIRIAllocation: St. Petersburg

June 2011 Production of ultrastrength nanostructured springsPortfolio company: Pruzhinalocation: Izhevsk, Republic of Udmurtia

RUSNANO USA, Inc. represents the interests of RUSNANO, its port-folio companies, and the Fund for Infrastructure and Educational Program in the United States and Canada. Its primary purposes are is to partner with high-tech companies and venture capital and private equity funds and to conduct preliminary due diligence on potential portfolio companies. RUSNANO USA, Inc. also facilitates the market-ing of Russian nano-enabled products in North American and global markets.

RUSNANO USA, Inc. forms long-term partnerships in North Ame-rica beneficial to RUSNANO and the Fund for Infrastructure and Educational Programs. It cooperates with other Russian institu-tions for development, particularly with the Skol kovo Foundation and Russian Venture Company.

Dmitry Akhanov is president and CEO of RUSNANO USA, Inc.

Contact:RUSNANO USA, Inc.3000 Sand Hill Rd, 2-240Menlo Park, CA 94025USA

RUSNANO USA, Inc. RUSNANO Israel ltd.

RUSNANO Israel ltd. represents the interests of RUSNANO, its port-folio companies, and the Fund for Infrastructure and Educational Programs in Israel. The mission of RUSNANO Israel ltd. is to develop, facilitate, and expand relations among investors, entrepreneurs, and scientists of the two countries.

RUSNANO Israel ltd. identifies innovative Israeli nanotechnology com-panies that fit RUSNANO’s investment criteria. It provides local assis-tance with technology, business, and financial due-diligence efforts and assists in equity investment deals. RUSNANO Israel ltd. and MATIMOP, the Israeli Industry Center for R&D, jointly operate the intergovernmen-tal Russia-Israel Bilateral R&D Program. RUSNANO Israel ltd. also focuses on organizing the technology transfers with purpose of establishing the manufacturing of promising nano-enabled products in Russia.

RUSNANO Israel ltd. collaborates with Israeli investment funds, inno-vative technology companies, universities, and technology transfer centers that are interested in cofinancing and further implementing innovative nanotechnology projects with RUSNANO.

Arkady Mil-Man is president and Alexander lazovsky is CEO of RUSNANO Israel ltd.

Contact:RUSNANO Israel ltd.Medinat HaYehudim 89, Building E, 11th FloorP.O. Box 4204Herzliya Pituach 46141Israel

May 2011 and December 2011 Production expansion for thermoelectric microcoolers using bismuth telluride nanopowder for optic-, micro-, and nanoelectronicsPortfolio company: RMTlocations: Moscow, Nizhny Novgorod

FActORIeS lAUNched IN 2010

December 2010 Production of electrochemical equipment for high-precision processing of parts from metals and nanostructured alloysPortfolio company: ECMlocation: Ufa, Republic of Bashkortostan

November 2010 Production of ultrabright nanoheterostructured lEDs and lED-based lighting systems using proprietary technology Portfolio company: Optoganlocation: St. Petersburg

April 2010 Production of solid-cast instruments with multilayer nanostructured coatingsProject company: New Instrumental Solutionslocation: Rybinsk, Yaroslavl Oblast

RUSNANO business units: • Attract projects for

financing and review the applications

• Conduct due diligence• Follow the projects

throughout their investment cycle


RUSNANO has developed a multistep process of expert review to select technically realizable and economically substantiated pro-jects. The company finances projects whose annual earnings in five years will reach or exceed 250 million rubles (about $8.5 mil-lion). As soon as a project reaches maturity, is able to function independently, RUSNANO sells its shares to invest the proceeds in other projects.

IF THE PROPOSED CO-INVESTMENT FROM RUSNANO IS BETWEEN $10 MIllION AND $45 MIllION, RUSNANO’S EXECUTIVE BOARD MAY INDEPENDENTlY APPROVE FINANCING. All OTHER PROJECTS AND JOINT INVESTMENT FUNDS REGARDlESS OF THEIR SIZE MUST GO BEFORE THE BOARD OF DIRECTORS FOR APPROVAl.

By submitting a request for project cofinancing, the applicant:• Receives expert evaluation of the project proposal• May find new areas in which its nano-related technology could

be applied• If successful, establishes a promising business and obtains ongoing

support for its fulfillment

StePS IN eVAlUAtINg A ReQUeSt

A request to RUSNANO for cofinancing will go through seven steps:

Step 1. Request for project review

The applicant must register a private account on RUSNANO’s web-site, www.rusnano.com, after which he or she will complete several documents available from the site:• Project application• Applicant questionnaire• Project specifications• Scientific and technical feasibility form• Business plan with information on key participants

Step 2. entry review

During this stage, the application is assessed for completeness, pertinence to nanotechnology, and conformity to other requirements of RUSNANO. If consistent the application is allocated to one of RUSNANO’s investment teams for subsequent steps. The project office notifies the applicant of results of entry review. If an application is incomplete, the applicant is invited to make corrections or additions.

Step 3. Science and technology expert evaluation

The science and technology expert evaluation decides whether pro-ject content is relevant to nanotechnology and considers the scientific validity and technical feasibility of the proposal. A working group of rep-resentatives from a business unit and specialists from the Department of Scientific and technological expertise determine the type of project and make a list of evaluations that will need to be completed. Examples include scientific and technology, manufacturing, patent expertise, and validation tests in certified centers. the evaluation encompasses both consultative and control aspects.

Step 4. Project review: Science and Technology Board

The Science and Technology Board is a body appointed by the Board of Directors of RUSNANO. From material gathered on the project

hOw AN APPlIcAtION tO RUSNANO BecOmeS A wORkINg FActORy and results of expert evaluations carried out in step 3, this group makes final decisions on the technical feasibility of the project, its scientific validity, and its classification as a nanotechnology-related endeavor. Recommendations from the Science and Technology Board are presented to the Executive Board and the Board of Direc-tors of RUSNANO.

Step 5. Investment evaluation

During this stage, analysts from the business team and market re-search companies conduct detailed assessments of the business plan, the product’s market competitiveness, and its attractiveness to investors. They perform indepth analyses of legal, patent, and other risks. There are, as well, discussions with potential co-inves-tors in preparation for the project investment agreement.

Step 6. Project approval

After favorable recommendation from the Science and Technol-ogy Board, and reports on investment analyses, a project goes through the Investment Commission and enters Executive Board review. If the proposed co-investment from RUSNANO is between 300 million rubles (about $10 million) and 1.3 billion rubles (about $45 mil lion), RUSNANO’s executive board may independently approve financing. All other projects and joint investment funds regardless of their size must go before the Board of Directors for approval.

BY SUBMITTING A REqUEST, THE APPlICANT:• RECEIVES EXPERT EVAlUATION• MAY FIND NEW AREAS• IF SUCCESSFUl, ESTABlISHES A PROMISING

BUSINESS

Step 7. Project financing

After a project has been approved, participants sign legally binding documents and the parties proceed to project financing.

The allotted term from the moment an application is received to the signing of the investment agreement is 180 days.

At all stages of project implementation, RUSNANO controls the expenditure of financial resources it has invested in the project through participation in management bodies of the project company and a treasury mechanism ensuring budget adherence.

The applicant registers at www.rusnano.com and completes several documents: • Project application• Applicant questionnaire• project specifications• Scientific and technical

feasibility form• Business plan with

information on key participants


The Fund for Infrastructure and Educational Programs was founded during the reorganization of the Russian Corporation of Nanotechnologies. It stimulates nanotechnology infrastructure building to support innovation in the country. The Fund for Infra-structure and Educational Programs primarily focuses its activity in these areas:• Formation of infrastructure for nanotechnology• Development of human resources for the nanoindustry• Market development for nanotechnology products• Improvement of the legislative framework for innovation• Standardization and certification of nanoproducts

and evaluation of their safety • Refinements in metrology • Popularization of nanotechnology and nano-enabled products

The highest governing body of the fund is its Supervisory Coun-cil, which is chaired by Deputy Minister of Education and Science of the Russian Federation Alexey Ponomarev. In accordance with the charter of the fund, the council determines priorities for its activities, establishes its strategies, and sets its budget.

The Management Committee is the fund’s collegial executive body. It is chaired by RUSNANO CEO Anatoly Chubais. Andrey Svinarenko is CEO of the Fund for Infrastructure and Educational Programs.

FUNd FOR INFRAStRUctURe ANd edUcAtIONAl PROgRAmS

techNOlOgy INFRAStRUctURe:NANOtechNOlOgy ceNteRS

Nanotechnology centers (nanocenters) are an indispensible ele ment of infrastructure for developing Russia’s nanoindustry. They incubate start-ups and prepare small innovative companies for market entry. The day-to-day functions of the nanocenters, which numbered 12 at the end of March 2012, include:• Engineering development for nanotech products, experimental-

design and experimental-technological work for commercial cus-tomers

• Intellectual property protection• Management, patent, and marketing support to small innovative

companies• Technology licensing• testing and obtaining product certifications

Nanocenters are organized to attract private capital. they offer op-portunities for profitable investment thanks to the division of each center into three independent business units:• A center for technology transfer• A property asset, the physical space of the building• A property asset, the equipment

Nanocenters are selected through tenders organized by the Fund for Infrastructure and educational programs. by the end of the first

quarter of 2012, twelve projects had been selected. Their budgets total $930 million of which RUSNANO will finance $450 million:

• Multifunctional nanotechnology center DUBNA, Moscow Oblast• Nanotechnology center Nano- and Microsystem Equipment,

Zelenograd• Multidisciplinary nanotechnology center SIGMA, Tomsk and Novo-

sibirsk, Siberia • Nanotechnology center Ulyanovskiy, Ulyanovsk • Nanotechnology center TECHNOSPARK, Troitsk, Moscow Oblast• Center for Nanotechnologies and Nanomaterials of the Republic

of Mordovia, Saransk• Nanotechnology Center of Composites, Moscow• Southern Nanotechnology Center, Stavropol• Nanotechnology center T-Nano, Moscow• Northwestern Nanotechnology Center, St. Petersburg• Nanotechnology center Yekaterinburg, Yekaterinburg• Nanotechnology center Idea, Kazan, Republic of Tatarstan

techNOlOgy INFRAStRUctURe: eNgINeeRINg cOmPANIeS

Engineering companies develop technology and instruments and product prototypes on contract basis, using their own facilities and equipment to devise solutions for specific customers.

engineering companies differ from manufacturing projects whose goals are to produce and sell products in the mass market. The work of an engineering company is usually unique for each cus-tomer and does not go into replication.

In the competitions that had been conducted through the first quarter of 2012, three companies were awarded rights to enter into investment agreements for engineering projects with the Fund for Infrastructure and Educational Programs:• Institute for Spectroscopy, Russian Academy of Sciences, Troitsk,

Moscow Oblast• Smart Engineering, Moscow • Noncommercial partnership Center for Innovative Energy Technology,

Moscow

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Nanocenters are an indispensible element of infrastructure for developing Russia’s nanoindustry. They incubate start-ups and prepare small innovative companies for market entry.

12 FOSTERING A NEW INDUSTRY

edUcAtIONAl PROgRAmS

For successful development, Russia’s nanoindustry will need 100,000 highly qualified specialists, each thoroughly knowledgeable in his or her field and possessing a multidisciplinary perspective. the fund for Infrastructure and Educational Programs has approached this chal-lenge through requests to the country’s education system, which has provided the base for educational activity – programs in skill development and advanced education, foremost for employees of RUSNANO’s portfolio companies. Through March 2012 the fund had sponsored 63 programs in which 1,100 individuals have studied.

FOR SUCCESSFUl DEVElOPMENT, RUSSIA’S NANOINDUSTRY WIll NEED 100,000 HIGHlY qUAlIFIED SPECIAlISTS, EACH THOROUGHlY KNOWlEDGEABlE IN HIS OR HER FIElD AND POSSESSING A MUlTIDISCIPlINARY PERSPECTIVE.

The fund’s educational programs fall into two groups: programs with an engineering and technology focus and programs that train man-agers from the nanoindustry in leadership and management skills. Most educational programs for portfolio company staff incorporate international collaboration: study in foreign universities, onsite learn-ing in businesses in Europe and the United States, lectures by world’s leading specialists.

The educational programs of the fund draw on distinguished Rus-sian scientific and educational centers and foreign universities and companies, among them: Stockholm School of Economics Russia,

MIT and Babson College (USA) , Feng Chia University (Taiwan), Techni-cal University of Berlin (Germany), Kember Associates and Strategic Technologies Practice (United Kingdom), Alcatel-lucent (Ireland), Bell labs and Skylight Navigation Technology (USA), OMMIC (France), and Optogan’s Dortmund research center (Germany).

Concerned that future generations should find work as nanoindustry professionals, the fund has initiated programs for early professional orientation of students and methodological support for teachers. The work is the province of the fund’s RUSNANO School league, which has already been extend to 20 schools in 10 regions of the Russian Federation. The annual all-Russia olympiad, jointly conduct-ed with Moscow State University, Nanotechnology – breakthrough to the future! plays a high-profile role in educating young people to look toward the nanosciences.


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Kolpachev’steam

GеоrgyKOLPACHEV

Managing directorrusnano

Georgy Kolpachev has been Managing Director at RUSNANO since 2008.

Before joining RUSNANO, Mr. Kolpachev headed the Russian office of Intel Corporation’s global direct and venture capital investment division – Intel Capi-tal. He also represented the interests of Intel in four of its portfolio companies. Earlier, as investment manager at the Scandinavian private equity fund Mint Capital, Mr. Kolpachev was responsible for all stages of the investment processes and represent-ed the fund in the boards of directors of Mint Capi-tal’s portfolio companies. At PricewaterhouseCoop-ers from 2003–2005, Georgy Kolpachev conducted due diligence on businesses and later became sen-ior consultant in the office that provided support for capital transactions. In that position, he took part corporate finance and M&As for leading Russian and international companies, including companies en-gaged in oil and gas, telecommunications, and the food industry. Mr. Kolpachev began his investment career as head of a project for technical analyses of stock index options on the NYSE and the Chicago Board Options Exchange for the Options Institute.

Georgy Kolpachev graduated with honors from the Moscow Institute of Physics and Technology, Department of General and Applied Physics. Later Mr. Kolpachev graduated from New Economic School, where he studied economics, and at the London Business School, where he studied private equity investing.

"WE BELIEvE IN RUSSIA. THIS IS A MARKET WITH GREAT GROWTH POTENTIAL – A HIGH LEvEL Of EDUCATION, A SCIENTIfIC BASE, AN APPRECIATION Of THE vITAL NEED fOR TECHNOLOGICAL DEvELOPMENT."


We are global. South Korea, Singapore, the United States, Germany, the United Kingdom are only a few of the home countries to compa-nies we have invested in with the goal of transferring advanced tech-nologies to Russia. Our priorities for investment are new electronics and photonics, energy efficiency, and biotechnology.

We are professional. You won’t hear: I can’t. I don’t understand. I don’t know. I am tired. We have experience working in Russia and abroad in leading venture capital companies, investment banks, consulting firms, investment funds, and manufacturing companies. When we invest in a company, we bring more than money – we bring smart money.

We create balanced, effective portfolio projects by collaborating with various types of partners – leading international venture capital funds, large domestic companies, and Russian scientists. Investing in a com-pany, in our view, is only a third of the work to be done. Therefore, we put our greatest energies into growing the businesses of our portfolio companies.

We feel high-tech’s trends. We like the projects that are one step ahead of the market. We understand that they are the ones that can become competitive on a global scale.

We believe in Russia. This is a market with great growth potential – a high level of education, a scientific base, an appreciation of the vital need for technological development. We work together to prove that in Russia it is possible to earn good money in high technology.

georgy Kolpachev’s teaM

Т

INOX

МК

Portfolio company TMK-INOX has designed its pipes for service in the energy sector, including nuclear power generation, also engi-neering, aviation and space. The company has introduced advanced cold-rolling mills, a new method of deformation and lubrication for forming hard, ultrathin separating layers suited to significant contact stress and plastic deformation. Ultrapure hydrogen, purified with na-nostructured zeolite, preserves pipe properties during thermal pro-cessing and reduces the number of technological operations that are required. Precise control of deformation and temperature parameters during processing enables formation of a crystal lattice of metal na-nostructures, enhancing plasticity and corrosion resistance, provid-ing particular geometric parameters, and improving surfaces. The project manufactures precision stainless steel and alloy pipes with superior qualities at significantly lower production costs.

The company’s products meet the most rigorous national and inter-national standards. Since beginning the project, TMK-INOX has won notable shares in Russian markets, where foreign manufacturers used to dominate, and it has its strengthened positions in international markets.

precision-engineered pipes oF stainless steel and alloys PORTfOLIO COMPANY TMK-INOXwww.tmk-group.com/tmk-inox.php

• Production of high precision pipes by modifying the metal at the nanolevel to improve resistance to aggressive environments

shareholders in portFolio coMpany

• RUSNANO • TMK

areas oF application

• Oil and gas production• Energy sector• Mechanical engineering and automotive construction • Air and space industry

MarKet Engineering firms, producers of nuclear energy, and power generation, and chemical industries

coMpetitive advantages

• Resistance to corrosive environments • Durability of surface and materials• Strength and ductility simultaneously • 30% more efficient manufacturing processes

production location Kamensk-Uralsky, Sverdlovsk Oblast Jobs created: 400

project stages

total budget

$127 million

co-investment by rusnano

$44 million

production start up

2010 2014 2016

design capacity

December December

Market share45% domestic

3% global

project initiation

December


Portfolio company Advanced Technologies Center manufactures the femtoScan series of scanning probe microscopes – precision instru-ments that use the mechanical movement of a probe (cantilever) to study the surface of an object. The microscopes are precise to about one nanometer. ATC also produces atomic scales that can register the presence of particles of various substances at the level of individual atoms. One promising application of these scales is as quick-response biosensors.

The company has established an R&D center where it will conduct re-search to perfect technology, carry out engineering development, and test prototypes and models. The center will supply software to work in instrument-managing and image-processing modes.

The scanning probe microscopes that ATC produces are capable of more than 50 sophisticated research regimes – contact atomic force microscopy, resonance atomic force microscopy, scanning frictional microscopy, scanning resistance microscopy, scanning tunneling mi-croscopy, electrostatic microscopy, magnetic force microscopy, force curve analysis, and nanolithography among them. Combining com-pact size with powerful software packages, ATC instruments can be ac-cessed through the Internet with open architecture.

Tagged neutron detectors differ from conventional x-ray detectors in that they identify hidden substances by their elemental composition, not by their density. Airport x-ray machines can find a bottle in a suit-case easily, but they cannot distinguish liquid explosives from water in the bottle. The Joint Institute for Nuclear Research in Dubna has devised a new detector of explosives and illicit materials that resolves this problem.

The detector identifies the composition of substances through the spectrum of gamma rays that are emitted when neutrons hit the sub-stance. The birth of a neutron in the generator is accompanied by the appearance of “tags,” alpha particles that fly away from the neutron to the alpha-detector. The selection of coincident signals with alpha and gamma ray detectors suppresses up to 200 times the signals from background noise. This dramatically changes the conditions for registering the spectrum of gamma rays from substances, making their identification faster and more reliable.

In production of its semiconductor alpha detectors, Neutron Technol-ogies uses high-alloyed nanolayers whose thicknesses are less than 100 nanometers.

As part of a Russian federal program to safeguard passengers using public transportion, the government has placed tagged neutron de-tectors in metro and train stations. Neutron Technologies has been entrusted with mass production of the detectors.

analytical equipMent For the nanoindustry

PORTfOLIO COMPANY Advanced Technologies Centerwww.nanoscopy.ru

• Production of analytical instruments for research in materials science, biology, and medicine • Production of high-precision sensors for analyses of chemical and biological substances

detectors oF explosives and narcotics

PORTfOLIO COMPANY Neutron Technologies ntech.jinr.ru

• Production to detectors that use tagged neutron technology fo find illicit materials and explosives


• RUSNANO• Scientific and Production Company ATC


• Materials science• Biology• Medicine• Nanotechnology• Surface quality control

MarKet

• Nanotechnology centers• Research institutes and departments• Producers of nanoproducts


• Highly flexible, multipurpose instruments • Broad capability for analyses • Low production costs

production location MoscowJobs to be created: 75

project stages


• RUSNANO• Joint Institute for Nuclear Research• Detectors of Explosive and Narcotic Substances


• Stationary luggage inspection systems• vehicle inspection systems• Portable detectors• Cargo container inspection systems

MarKet Authorities overseeing airports, sea and river ports, railway stations, and parking lots; law enforcement agencies


• Identification of more than 30 explosives• Automated identification, without human intervention• Probability of identification 98%

production location Dubna, Moscow Oblast

project stages

total budget

$13 million

total budget

$16million


$5 million


$5 million

project initiation

2010 2011 2015 2016

production start up

December September

design capacity

June

Market share 7% domestic

and cisproject initiation

2010 2011 2015

production start up

December December

design capacity

March


The basalt-based materials that TBM will produce within this project are specially designed for the extreme conditions in the Republic of Sakha (Yakutia) in Russia’s far East, one of the Earth’s largest areas of permafrost. The materials have low thermal conductivity and long service lives, and they are highly durable in very low temperatures. Basalt’s resistance to corrosion and the effects of chemicals makes the materials suitable for use where moisture is high year round. In fact, basalt appears to be the best material for construction of homes and roads in permafrost.

TBM plans to manufacture four products:• Basalt-concrete composites for industrial and civil construction• Basalt-plastic armature for reinforced concrete buildings and road

coverings• Basalt-plastic grids for reinforcing roadways, embankments, and

slopes• Basalt continuous filament, raw material for production of compos-

ite building materials

The filament is obtained from natural rock in the basalt family. The rock is melted to a temperature of 1400°С. The material is then stretched into basaltic threads from which, after modification with nanoparticles, basalt-plastic construction materials and articles are made.

Local production of the basalt fiber materials will reduce transpor-tation costs for construction materials and help normalize road and housing construction.

Germanium is used in optics, semiconductor electronics, medicine, and other areas. Optics containing germanium are used in night vision equip-ment. Germanium is a key input for photovoltaic equipment – for high performance and space applications. In the lighting industry, germanium is used as a reagent in production of luminescent materials; in the chemi-cal industry, as a catalyst; in metallurgy, germanium is used to produce special alloys. Pharmacology uses germanium as an ingredient in bioac-tive additives and in anticancer drugs. Germanium is at the foundation of many solutions in nanotechnology.

In November 2011 Germanium and Applications launched new high-technology production of electro-optical components in Novomosko-vsk, in Tula Oblast. The plant is equipped with advanced measuring tools and other state-of-the-art equipment, like the numerically controlled machinery for preparing spheres and equipment to fine grind and polish optical lenses and substrates.

Production of germanium and germanium-containing components is part of a large-scale manufacturing complex belonging to Germanium and Applications that is being expanded with RUSNANO. Germanium-rich coal is extracted at the company’s mines in Primorsky Krai. A few kilo-meters from the coal field, the company has introduced a unique process for manufacturing germanium concentrate.

Germanium and Applications is the only vertically integrated producer of germanium in Russia. When plant expansion is completed in 2013, the company will be set to pursue world-leading production of this strategic element.

Basalt FiBer construction Materials

PORTfOLIO COMPANY TBM

• Production of basalt fiber construction materials for Russia’s far East and other regions with permafrost conditions

gerManiuM-Based products For optical- and nanoelectronic equipMentPORTfOLIO COMPANY Germanium and Applicationswww.geapplic.ru/en/

• vertically integrated production of germanium-based products: disks, bars, plates, and spherical blanks for lenses


• RUSNANO• fund MIR (Modernization, Innovation, Development)

vnesheconombank group • Managing company TBM


• Housing construction• Mining• Road building

MarKet Construction companies, road building companies and companies engaged in mining


• Low heat conductivity• Highly durable in extreme cold• Long service life• Resistant to chemicals and corrosion

production locations Pokrovsk and Yakutsk, Republic of Sakha (Yakutia)Jobs to be created: 252

project stages


• RUSNANO• Private co-investors


• Chemical industry• Metallurgy• Electronics and lighting• Alternative energy• Medicine

MarKet Producers of infrared instruments and devices, thermal imagers, solar panels for space applications, and other high-tech areas


• Proprietary mineral base in Primorsky Krai with one of the world’s richest reserves of germanium ore

• vertically integrated production, reducing dependence on imports and other external factors

production locations Novomoskovsk, Tula OblastNovoshakhtinsky, Primorsk KraiJobs created: 150

project stages

total budget

$32million

total budget

$75 million


$14 million


$27 million

project initiation

2011 2013 2015 2016

production start up

December July

design capacity

July

Market share 5% russia’s Far

east and republic of sakha (yakutia)

project initiation

2009 2011 2013 2015

production start up

design capacity

October November Q3


6% global


One of the world’s leaders in manufacturing energy storage solutions, Nesscap Energy Inc. will establish a Russian subsidiary for manufac-turing high-capacitance ultracapacitors and modules. Automotive markets are particularly attractive due to increasing use of ultraca-pacitors for vehicles with hybrid engines, energy storage systems for various forms of transport, ignition for diesel engines, stabilization of supply-line voltage, and standby power. Use of ultracapacitors in combination with traditional batteries, to accommodate peak loads, is the most effective application and could well become one of the energy solutions of the future – the ultracapacitors extend, doubling and even tripling, service lives of batteries.

The company sells its products for automotive and alternative energy applications to growing markets in Europe and Asia.

Ultracapacitors are organic electrolyte capacitors with an additional dielectric separator. The separator allows the accumulation of a sig-nificant charge. Nesscap has developed a proprietary technology that activates carbon with formation of subnanometer pores, achieving extremely high surface area of the electrode. The contact surface is the key factor influencing the parameters of the device.

This project will establish a technology research and development center with leading Russian research institutes.

ultracapacitors

PORTfOLIO COMPANY Nesscap Energy, Inc.www.nesscap.com

• Production of ultracapacitors for energy solutions, transport, industry, and consumer electronics


• RUSNANO • Nesscap Energy, Inc.• I2Bf Global ventures


• Automotive and railway transport• Alternative energy and conventional power grids• Defense

MarKet Producers of hybrid vehicles and back up power systems


• Large capacity and high power • Rapid charge/discharge • Long service life • Low self-discharge

production locations Gyeonggi Province, South KoreaMoscow, RussiaJobs to be created: 200

project stages

total budget

$43 million


$33 million

Joule has developed technology for direct and continual transforma-tion of sunlight and carbon dioxide waste into diesel fuel, ethanol, and other chemical compounds in high demand.

In contrast to ordinary biofuels that consume biomass in their pro-duction, Joule produces its renewable fuel directly from carbon di-oxide. The production process does not require biomass feedstock, agricultural land, or fresh water. Diesel fuel and ethanol produced by Joule do not need additional processing. They are compatible with ex-isting fuel delivery infrastructure. And the technology is environmen-tally sound, consuming industrial waste and creating none of its own.

In commercial production, Joule’s processes can obtain as much as 140,000 liters of diesel fuel and 230,000 liters of ethanol per year from one hectare of land. Its costs are lower than regular fuels.

Joule’s organization of an R&D center and commercialization of the technology in Russia will enable the country to become one of the leading global players in this field.

renewaBle Fuel

PORTfOLIO COMPANY Joule Unlimitedwww.jouleunlimited.com

• Production of renewable fuel in a continuous cycle directly from carbon dioxide using sunlight


• RUSNANO• flagship ventures• Private and institutional co-investors


• fuel industry• Chemical industry

MarKet Diesel fuel distributors and large industrial players


• No additional processing required• Low cost of production• High potential for expansion

production locations Headquarters in Boston, MAPilot factory in TexasA southern province of Russia (company’s first commercial plant)

project stages

total budget

$300 million


$35 million

projectinitiation

2011 2013 2014 2015

production start up

design capacity

September June December


25% global

project initiation

2011 2013 2014 2020

operations in russia

design capacity

September Q1

Market share 3% global(biofuel)


The history of laser pioneer IPG Photonics Corporation of Oxford, Mas-sachusetts, begins more than two decades ago with Russian company IRE-Polus. Its story of creating a scientific and manufacturing corporation of global magnitude is unique in the history of Russian high technology. Established by Russian physicist and fiber laser pioneer valentin Gapont-sev, IPG Photonics has become over the past six years the world leader in fiber lasers, related instruments, and systems derived from the lasers. The corporation holds 75 percent of the global fiber laser market. Its shares are traded on the NASDAQ. And Russia’s IRE-Polus, the starting point for these advances, will soon become one of three manufacturing locations for the US-based company and project initiator; the others are in Germa-ny and the United States.

Products from this project are designed for industrial applications – cut-ting, welding, tempering, depositing, microprocessing, and engraving of metal parts. The tools are significantly more precise and more productive than competing products.

FiBer lasers and telecoMMunications equipMent

PORTfOLIO COMPANY IRE-Poluswww.ntoire-polus.ru

• Production of fiber lasers and modern high-tech communications equipment


• RUSNANO• IPG Photonics Corporation (USA)


• Materials processing • Telecommunications• Medicine• Commercial printing

MarKet All areas of manufacturing in which powerful lasers can improve production, particularly processing of highly durable materials of different thicknesses in metallurgy, shipbuilding, and automobile construction


• Lower energy consumption • Greater productivity • Compactness and mobility of equipment• Highly stable power output• Higher performance index• Lower operating costs• In-house production of key elements

production location fryazino, Moscow OblastJobs to be created: 1,000

project stages

total budget

$187 million


$53 million

This project will create technical solutions for introducing and exploiting RfID technology in the Russian federation. If that effort, phase one of the project, is successful, the company-integrator will carry out an RfID demonstration project in retail trade.

RfID, radio frequency identification, tags are a modern method of iden-tifying objects that is widely used by transnational retail food companies and transportation and logistics companies that work with them. RfID tags have many advantages over commonly used bar codes, and some day they may fully replace the older technology. RfID tags can accom-modate significantly more information. Their useful lives are longer. They may be rewritten on numerous times.

RfID technology reduces expenses throughout the entire distribution and sales chain. Warehousing and turnover become more efficient thanks to RfID technology. Because the tags are an electronic certificate for the goods, they prevent counterfeit items from going to the consum-er, improve control over vendors, and resolve costly problems with track-ing and removing expired products – particularly important for drugs and other short-lived commodities.

The project plans to demonstrate the suitability of RfID technology by opening a pilot future Store using X5 Retail Group as its base. X5 Retail Group owns supermarket chains Perekrestok, Pyaterochka, and Karusel. The store would open in 2013 and sell food and household goods. The project will also develop standards for the field, a prerequisite for chang-ing the country’s normative and legislative base for retail trade and man-ufacturing.

Model retail store with nano-enaBled rFid solutions

PORTfOLIO COMPANY future Store

• Adaptation and improvement of RfID technology and implementation of an RfID tag system, via retail leader-integrator X5 Retail Group, to control consumer goods from manufacturer through retail sales via retail leader-integrator X5 Retail Group


• RUSNANO• SINTRONICS• X5 Retail Group

area oF application Retail operations

MarKet Russian operators of retail trade outlets, suppliers of fast-moving consumer goods, transportation and logistics companies


• Increases employee productivity• Raises inventory accuracy to virtually 100%• Reduces stock on hand• Raises sales through efficient restocking and targeted

marketing activities

location Moscow

project stages

total budget

$12million


$4million

project initiation

2011 2013 2016

operations start up retail chain start up(more than 5 stores)

September

project initiation

2010 2012 2015 2016

production expansion

December Q2

design capacityJanuary


70% global


Plastic Logic has developed proprietary technology for producing structured semiconductors, conductors, and dielectrics from poly-mers that can be used to obtain large integrated circuits with an ac-tive high-resolution matrix on flexible substrates. Because the pro-cess does not require high temperatures, polymer materials are an ideal base. The technology supports production of displays that are thinner, lighter, and more durable than displays on glass substrates. final products are reliable and simple to work with – advances that are significant to consumers. Plastic Logic combines its flexible in-tegrated boards with the material in the front panel to obtain “elec-tronic paper” with a light-reflective surface that is flexible and able to retain information after power is turned off.

The project’s main products are a device with Plastic Logic’s plastic display for managing electronic documents and reading e-books as well as other plastic display-based products.

plastic electronics: displays and other devices PORTfOLIO COMPANY Plastic Logic (Russia)www.plasticlogic.com

• Production of displays and devices using plastic electronic technology


• RUSNANO• OAK Investment Partners (USA)• Amadeus Capital Partners• Other legal entities

area oF application Shockproof e-book readers and related devices

MarKet flexible displays:

• Producers of consumer electronicsReaders:

• Educational systems• Corporations (paper replacement)• Healthcare providers • State agencies and departments


• Lightweight and thin• Large e-ink screen • Durable• flexible

technology center location Zelenograd, administrative subdivision of Moscow

project stages

total budget

$1.124 billion


$242 million

project initiation

2011 2015 2017

production start up design capacity

January


Alexander Kondrashov’steam

FOST

ERIN

G A

NEW

IND

UST

RY

Alexander KONDRAShOv

Managing DirectorRUSNANO

Alexander Kondrashov joined RUSNANO in 2008. he heads one of the company’s six business units that carry out investments in high-tech businesses involving nanotechnology.

Prior to joining RUSNANO, Mr. Kondrashov was chairman and principal shareholder of Leader Invest, a premier investment group in Belarus. To this day, Leader Invest holds the record for closing the largest M&A deal in the Belarusian market. Mr. Kondrashov is co-owner of KNG Development, a Russian regional real estate company. Before that he was managing director at Kuna Group, a Russian family office fund. In that position, Alexander gained experience in many industries including commercial banking, M&A, alcohol & beverages, building materials, land development, mining, and jewelry.

Alexander Kondrashov was born in Moscow. he graduated from the Faculty of Economics of Moscow State University. he holds an MBA degree from the Graduate Business School of Moscow State University. In 2001 Mr. Kondrashov earned a diploma from the IoD, the Institute of Directors, in the United Kingdom.

"OUR TEAM hELPS PORTFOLIO cOMPANIES ENTER NEW MARKETS, OvERcOME MARKET AND REGULATORY BARRIERS, BUILD STRONG MANAGEMENT TEAMS AND FIND OPPORTUNITIES FOR GROWTh."

TO bE MORE ThAN SMART MONEY.


The portfolio company will manufacture oil production equipment for complex conditions – equipment (electric submersible pumps) for hard-to-extract reserves and harsh well environments. The technological innovation of the project lies in using nanostructured protective and functional coatings of tungsten carbide with additions of titanium oxide, chrome, aluminum oxide, and molybdenum in production of ESP components. The coatings have been developed by Novomet and its partners.

Novomet Perm, the portfolio company, will use a flame spray technology to apply the coatings. Granules in the structure of the coatings range from 5 nanometers to 100 nanometers. Nanotechnology delivers significant benefit, reducing the friction coefficient in the radial bearings by 30 percent to 40 percent, raising wear resistance in the bearings by 50 percent to 100 percent, raising resistance of pump parts to corrosion and hydroabrasion, lowering energy use, and reducing the size of the unit. The new coatings make economical use of tungsten, requiring only 1/40th of the amount of the precious element than is required in the solid alloys typically used to produce submersible pumps.

These benefits make the Novomet pump one of the most reliable and energy efficient in the global market, its advantages are unmatched for oil production at difficult fields and on the shelf.

RUSNANO's investment will also go toward developing a global servicing network so that Novomet can offer clients worldwide maintenance services for ESP systems – from selecting the most suitable units to regular and overhaul repairing of system elements along with training client personnel to achieve maximum exploitation.

OIl pRODUcTION EqUIpMENT WITh NANOSTRUcTURED cOATINGSPORTFOLIO cOMPANY Novomet Permwww.novomet.ru

• Expanding production of electric submersible pump systems and components with nanostructured protective coatings and development of a global service network

The team specializes in high-tech investments – from lab-scale production to international acquisitions. We make greenfield investments, finance growth (private equity), and invest in start-ups (venture capital).

The team's $2.7-bilion investment portfolio contains more than 20 companies from six countries. We have already co-invested more than $400 million in these businesses and made commitments to invest about $500 million more.

companies in our portfolio are engaged in a variety of industries:• New materials, chemicals, and metallurgy • Alternative energy and energy efficiency • Engineering, electronics, and machinery

Our team was the first at RUSNANO to enter a deal with a foreign public company (IBt Bebig, September 2008), the first to conclude a transaction with a foreign private company (Galileo vacuum Systems, May 2009), and the first to ascend to the board of

directors of a foreign public company (ItN Nanovation, May 2011). A $250-million deal with Novomet and Baring Vostok Capital Partners was named the central Deal of the Year 2011 in the Russian private equity market by PREQVECA Monthly, an analytical bulletin.

We are a close-knit team of highly qualified managers, analysts, lawyers, and experts. committed to creating value, we have set our sights on achieving the best, the most ambitious goals. Members of the team have had many successes in the investment business. We understand superbly from the inside how business processes work. Synergy and experience have made us effective collaborators with management and shareholders of portfolio companies.

Our team helps portfolio companies enter new markets, overcome market and regulatory barriers, build strong management teams, and find opportunities for growth.

To be more than smart money.

ShAREhOlDERS IN pORTFOlIO cOMpANY

• RUSNANO• Baring vostok capital Partners • Portfolio company management

AREA OF ApplIcATION Oil and gas industry

MARkET Oil production companies

cOMpETITIvE ADvANTAGES

• Energy savings of 20% to 30% • highly resistant to corrosion and hydroabrasion • compactness

pRODUcTION lOcATION PermJobs to be created: 4,000

pROJEcT STAGES

Total budget

$712million

co-investment by RUSNANO

$136million

AlExANDER kONDRAShOv’S TEAM

project initiation

2011 2013. 2015

production start up

Design capacity


8% global

November November December


LED Microsensor NT is the world’s only producer of the full range of LEDs and photodiodes for the mid-infrared spectrum (wavelengths of 1,600–5,000 nanometers). The product is used as a unique component base for sensors of various substances in liquids, gases, and solid matter.

Sensors based on mid-infrared LEDs can identify more than 50 substances. They can perform analysis of as many as 10 components simultaneously thanks to a multicolored matrix. Their rapid response time suits them to dynamic analyses, for example, analysis on conveyor lines or in liquid flows.

The company has a team of leading Russian scientists whose experience in research and development of heterostructures for mid-infrared spectral range exceeds 15 years.

Advanced Wire Technologies (AWT), a wholly owned subsidiary of cutting Edge Technologies, is a manufacturer of high quality ultra tensile strength sawing wire (diameter 80-140 μm) for abrasive cutting of crystals and hard brittle materials in multi-pass wire cutting equipment.

The innovative technology of plasma surface treatment in the manufacturing process improves wire performance characteristics, enhances quality, and lowers wire conversion costs. As a result, wire breaks occur half as often and the product cost is 20 percent less than wire from the global market leaders. AWT's manufacturing facility will produce 10,000 tons of superior tensile strength cutting wire annually, allowing it to acquire 6 percent to 7 percent of the estimated $700-million global market (2011 estimate).

AWT will establish an R&D center in St. Petersburg where it will improve the proprietary technology for plasma modification of the wire surface.

INFRARED lEDS AND OpTIcAl SENSORS

PORTFOLIO cOMPANY LED Microsensor NTwww.lmsnt.com

• Production of semiconductor optical elements for the mid-infrared spectrum

cUTTING WIRE FOR SEMIcONDUcTOR pRODUcTION

PORTFOLIO cOMPANY cutting Edge Technologies (holding company)www.advancedwiretechnologies.ru

• Production of ultra tensile strength sawing wire for abrasive cutting of various crystals and hard brittle materials in multi-pass wire cutting equipment


• RUSNANO• LED Microsensor

AREAS OF ApplIcATION

• Industrial and domestic environmental safety • Analytical instruments • Medical equipment• Environmental monitoring

MARkET Producers of analytical equipment


• Size of working element 1/10th that of competitors • Longer service life – 80,000 hours • Rapid response – 10 nanoseconds• Ability to measure concentration of 0% to 100% • Ability to perform multicomponent analysis• Low power consumption – 1 mW

pRODUcTION lOcATION St. PetersburgJobs to be created: 100

pROJEcT STAGES


• RUSNANO• Terwingo


• Solar energy • LED manufacturing• Microelectronics

MARkET Producers of solar cells, LEDs, and microelectronics


• Minimal crystal structure distortion while cutting• Greater wire durability • Lower cost of production

pRODUcTION lOcATIONS Lipetsk Oblast St. Petersburg (R&D center) Jobs to be created: 90

pROJEcT STAGES

Total budget

$37million

Total budget

$250million


$14million


$88million

project initiation

2011 2013 2014 2015

production start up

Design capacity

July Q1 July

Market share 80% domestic5%–7% global

project initiation

2011 2013 2015

Design capacity

November December

Market share 3% global


Galileo Nanotech uses a vacuum metallization process for film and paper coatings that is the brainchild of Galileo Vacuum Systems S. p. A. The technology may be used to metalize any flexible surface, including selective metallization. The new technology applied to the RFID antennas enables high performance at much lower costs.

RFID tags is one of the areas where the advantages of vacuum metallization technology are most apparent. Radio frequency identification uses electromagnetic emissions to read and record information on an RFID tag. Information on the tag may be updated or rerecorded. The tags are used to identify and track objects (goods in warehouses and retail chains and packages), for anti-counterfeiting, in accounting and control automation, and in smart identification documents.

RFID tags can be read quickly through the packaging material even when hidden from view. The unique quality of the technology is its ability to read several tags simultaneously within a radius of hundreds of meters for semi-active tags. Each tag is assigned an exclusive and unchangeable identification number during production. That guarantees a high level of protection against counterfeiting.

Galileo Nanotech aims to be a leading Russian producer of metalized packaging materials and RFID antennas. It is backed by an Italian company that is one of the top three global producers of metallization equipment.

Metalized packaging Materials, rFid tags and antennas PORTFOLIO COMPANY Galileo Nanotechwww.galileonano.ru

• Production of radio frequency identification tags, antennas, and metalized packaging material


• RUSNANO• CGII S. p. A. (Italy)


• Packaging • Food stuffs• Fast moving consumer goods• Warehousing and shipping

Market Producers of fast-moving consumer goods, producers of labels, retail chains, shipping and delivery services, and systems integrators


• Proprietary metallization technology• Optimal use of materials• Low cost of production

production location Khotkovo, Moscow Oblast

proJect stages

total budget

$73million


$40million

project initiation

2009 2011 2015

project initiation

October December

design capacity

December

By 2014 about 80 percent of the portfolio company's products will be polymer nanocomposites from a moldable polymer base (matrix) and filler.

Compared with ordinary composites, the materials produced by METACLAY have new characteristics, including higher mechanical durability and fire safety and greater barriers to water and gas penetration. They are being used to protect oil and gas pipes from corrosion and to manufacture cushion blocks for railway fastenings, flexible packaging for FMCGs, and noncombustible cable insulation. Most of the products have been certified by customers and tested at their production lines.

METACLAY's technology is based on developments by scientists at Russia's leading R&D centers. To stay upfront, METACLAY has opened a high-end R&D center to execute the full cycle of scientific development. It can move from an idea, through studies of the materials, to manufacturing test batches for its own needs or on client's demand.

nanosilicates and polyMer nanocoMpositesPORTFOLIO COMPANY METACLAYwww.metaclay.com

• Production of modified layered nanosilicates, masterbatches, and polymer nanocomposites


• RUSNANO• Management


• Oil and gas• Cable industry• Packaging• Automotive construction • Construction

Market Customers in heavy industry and FMCG: pipes, cables, railway com-ponents and rolling stock, automotive components, and building materials as well as packaging for FMCG

coMpetitive advantages Superior characteristics over competing products at lower production costs

production location Karachev, Bryansk OblastJobs created: 210

proJect stages

total budget

$64million


$37million

project initiation

2011 2012 2013 2015

production start up

design capacity

April February December

Market share 50% domestic (nanosilicates)


Advenira Enterprises will manufacture SDN, solution derived nanocomposite, equipment for applying nanocoatings to a variety of surfaces and produce precursors (solution starters) and cartridges. SDN technology has many applications. It can be used to apply coating during manufacture of low-emission architectural glass, for solar cells, displays, microelectronic equipment, and packaging and antibacterial materials.

At present there are several standard approaches for depositing functional nanocomposite films: physical vapor deposition, PvD; chemical vapor deposition, cvD; and several methods for applying a limited number of liquids, in particular the sol-gel process. The latter has many advantages, but its use is limited because the solution precursors have short useful lives. SDN technology is a modification of the sol-gel method that has overcome problems maintaining the precursor solution in its initial state.

Portfolio company Advenira Enterprises, Inc., founded in Silicon valley in 2010 by a group of Russian scientists, holds the patents for the equipment for depositing nanocomposite coatings.

EqUpMENT FOR NANOcOMpOSITE MUlTIFUNcTIONAl cOATINGS DEpOSITION PORTFOLIO cOMPANY Advenira Enterprises, Inc.www.advenira.com

• Production of equipment and provision of services for multifunctional coating deposition using solution derived nanocomposite technology


• RUSNANO• ADcO Engineering, Inc.


• Renewable energy• Energy conservation• Medical diagnostics• Biomedical prostheses

MARkET Producers of float glass and glass with customized properties, microelectronics, and advanced food packaging


• Lower cost of equipment (20% to 33% of other deposition methods)

• Lower cost of coatings (10% of other methods)• Low energy use to produce coatings• Superior coating characteristics: transparent, improved barrier

capabilities, resistant to erosion

pRODUcTION lOcATIONS Special economic zone in St. Petersburg Silicon valley, cA, USAJobs to be created: 25

pROJEcT STAGES

Total budget

$67million


$33million

project initiation

2011 2015 2017

production start up

December January

Design capacity


10% global

December

The portfolio company manufactures polymer membranes and membrane-based separation modules for ultra- and nano-filtration and reverse osmosis. Membrane pores range from 1/10th of a nanometer to 100 nanometers.

Membrane technology is widely used in all areas of industry where water and waste treatment are needed. Membrane technology used in power industry, microelectronics, pharmaceuticals, and the food industry reduces costs in obtaining water that is ultraclean, salt-free, and free of microbes and bacteria. In both sewage treatment and concentrated solutions for the chemical and milk industries, membrane technology lowers production costs.

RM Nanotech’s products will replace similar imported goods with domestic products that have better consumer properties. The portfolio company has excellent prospects for future development, including new membrane forms tailored to specific applications thanks to project initiator and shareholder vladipor-M, a science and technology center that transferred its membrane studies and technological advances, and to high demand for better quality water.

NANOSTRUcTURED MEMbRANES AND RElATED MODUlESPORTFOLIO cOMPANY RM Nanotechwww.rmnanotech.ru

• Production of nanostructured membranes and separating modules for water treatment and water purification


• RUSNANO• vladipor-M


• Water treatment • chemical industry• Food industry

MARkET Engineering companies producing water purification systems and businesses engaged in chemical, pharmaceutical, and food industries


• high-quality products• Low production costs

pRODUcTION lOcATION vladimirJobs to be created: 160

pROJEcT STAGES

Total budget

$65million


$27million

project initiation

2010 2013 2015

production start up

April March December

Design capacity


1.2% global


Profotech will produce fiber-optic systems for measuring energy use and power grid protection. By incorporating nanofibers into its fiber optic current and voltage sensors, Profotech is able to provide innovative solutions to the power industry and other energy-intensive industrial sectors and to replace imports with domestic products that have better consumer properties. The nanofibers owe their superior technical characteristics to nanosized quartz ribs, 50 nanometers to 80 nanometers, inside the load-bearing quartz sheath on which the fiber’s core is hung.

Fiber optic sensors pave the way for intelligent energy systems like SmartGrid, ensuring the exactitude of measurement required in such networks. The sensors also make it possible to control and manage electric power grids in real time.

NaNofiber seNsors: fiber optic meteriNg systemsPORTFOLIO COMPANY Profotechwww.profotech.ru

• Production of nano-enabled fiber optic systems for measuring current and voltage in power grids

shareholders iN portfolio compaNy

• RUSNANO• ONEXIM Group

areas of applicatioN

• Power industry• SmartGrids and other intelligent energy systems• Transportation • Metallurgy• Mining

market Energy producers and related companies and businesses with intensive energy use

competitive advaNtages

• Virtually service free• Particularly sensitive measurement• Impervious to external activities• Safe from fire and explosion• Reduces unaccounted energy use by 90%• Eliminates service disruptions

productioN locatioN Fryazino, Moscow OblastJobs to be created: 188

proJect stages

total budget

$45million

co-investment by rusNaNo

$20million

project initiation

2010 2013 2015

production start up

December March

design capacity

market share 15% domestic

September

Portfolio company Plackart offers industrial customers services and ready-made solutions for applying multipurpose nanostructured coatings – thermal-barrier, wear-resistant, and corrosion-resistant coatings – through a network of centers. The coatings protect drilling platforms, bridges, steel structures, and associated apparatuses from corrosion. They safeguard stop valves and tubing fittings and drilling and oil and gas production and processing equipment from wear and tear. Robotized equipment and metallurgical labs ensure strict quality control and permit the company to produce coatings with programmed hardness, porosity, and adhesion.

The project uses two of the most popular and promising application technologies in the world – thermal spraying and ion-plasma magnetron sputtering. The new technologies are replacing obsolete and environmentally harmful ones, especially galvanic technology. By combining these technologies, scientists are able to develop coatings with entirely new properties. For example, by depositing nanocoatings, Plackart enabled its client to attain significantly better gas turbine engines performance, higher power, and longer life cycle.

In 2011 Plackart launched two new lines, a line for thermal spraying in Sherbinka, a neighborhood in Moscow, and special installations for applying coatings in the Nizhny Novgorod. Those plants and the previously existing lines in Perm and Tyumen enable Plackart to apply nearly any coating known today for protecting metal from wear and corrosion.

protective NaNocoatiNgs

PORTFOLIO COMPANY Plackartwww.plackart.com

• Deposition of functional nano-enabled coatings to equipment in a wide variety of industries through a network of service centers

shareholders iN portfolio compaNy

• RUSNANO• Rosatom • Managing company ODK• Management

areas of applicatioN

• Engineering• Oil and gas industry• Energy• Metallurgy• Aviation

market Wide range of industrial applications

competitive advaNtages

• Better product characteristics• Lower cost of deposition • Environmentally safe deposition process

productioN locatioNs Моscow, St. Petersburg , Perm, Tyumen, Ufa (Bashkortostan), Kursk, Nizhny Novgorod, Naberezhnye Chelny (Tatarstan) Jobs created: 300–500

proJect stages

total budget

$109million

co-investment by rusNaNo

$41million

2010 2015

production start up

project initiation

September

September

January

design capacity(network of service centers)



Galen will produce four polymer composite products to be used in the construction industry, mining, and road maintenance:• Flexible ties for inside walls of buildings: extremely low heat trans-

mission, corrosion resistant, and unaffected by alkalines• Pit barring support: safe for using inside mines (no production of

sparks when being drilled), lower cost than metal pit barring• construction armature: corrosion resistant, lengthier service life

than steel armature, produces more durable structures, lower transportation costs due to lighter weight materials

• Lighting poles: highly durable, resistant to negative atmospheric impact (including ultraviolet light) and corrosion, more resistant to crashes, and lighter weight than reinforced concrete or metal poles

Today Galen owns two production sites in Russia and Belarus and dealerships in Russia, cIS countries, and the UK. It is an export-oriented business – 30 percent of sales are in Western Europe. The company possesses know-how and more than 20 patents in its field. It has used nanotechnologies in its manufacturing processes since 2009. In 2011 Galen became a portfolio company of RUSNANO.

Galen is the first Russian composites company to form patnerships with world renowned global composites market players such as Top Glass of Italy and Kemrock group of India. These partnerships open access to new technologies. Joint projects will offer Eastern European market world-quality solutions.

cOMpOSITE NANOpOlYMER bASED ON bASAlT FIbER

PORTFOLIO cOMPANY Galenwww.galen.su

• Production of composite nanonstructured polymer reinforced with basalt fiber


• RUSNANO• Galen


• construction industry• Mining

MARkET construction companies, mining companies, underground mines


• Three times more durable than steel • Material does not corrode• One-quarter the weight of steel• Lower transportation costs• More economical for erecting tall structures • Service life of material exceeds 100 years • Heat resistance to 700°С and short-term, to 1,000°С • Low heat transfer (1% that of metal), improving thermal

insulation by up to 35%

pRODUcTION lOcATION cheboksary, chuvash RepublicJobs created: 130

pROJEcT STAGES

Total budget

$20million


$7million

production start up

project initiation

2011 2013 2015

Design capacity

November

November

January



Dmitriy Lisenkov’s team

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Dmitriy LISENkOv


Dmitriy joined RUSNANO as managing director in August 2008. He heads one of six business units responsible for investments in innovative nanotechnology-based businesses. He is a board member in a number of RUSNANO portfolio companies, including Crocus Nanoelectronics, vIRIAL, NEvZ-CERAMICS, and OptoSense.

In 2007 Dmitriy co-founded Bioprocess Capital Partners, management company of Bioprocess Capital ventures, a venture fund that invests in Russian technology startups. At BCv he participated in determining the fund’s strategy, attracted investors, selected companies for investments, and structured the deals.

From 2003 to 2007 Dmitriy worked first as an investment officer and later as a managing partner at the Russian Technology Fund. RTF was established in 1995 and was the first venture capital fund to invest in Russian technology companies. At RTF Dmitriy headed the St. Petersburg office and was responsible for investee business development and exits.

Dmitriy earned an MS in economics with honors from St. Petersburg State University of Economics and Finance and an MBA with specialty in finance and investments with honors from the Zicklin School of Business, City University of New York.

"OUR FOCUS ON RESULTS AND A kEEN DESIRE TO ESTABLISH A PROFESSIONAL REPUTATION FOR ExCELLENCE ARE THE kEYS TO OUR SUCCESS."


We are a team of twenty professionals – investment managers, lawyers, and analysts – in private equity and venture investing. By the end of the first quarter of 2012, funds under our management had reached $700 million. They are being invested in 15 Russian and international companies working in high-technology areas such as new electronics, advanced materials, energy efficiency, and biotechnology.

Before joining RUSNANO as managing director in August 2008, Dmitriy Lisenkov had been the managing partner of the country’s first venture fund, the Russian Technology Fund. He was a pioneer in venture capital investments in Russia. At RUSNANO Mr. Lisenkov has built a team of professionals with extensive experience in private equity, venture capital, industrial business development, investment banking, management consulting, and law. Three team members relinquished positions as partners in investment funds to become part of the new enterprise. Collectively, the members of this new team of outstanding specialists have more than 70 years of investment experience. Their educational credentials are equally impressive: PhDs, MBAs, and CFAs, as well as other internationally recognized degrees. Significant for investment in high-technology, most of the team earned their first degrees in technical areas from leading universities.

“We work with growing companies that have set their sights on becoming national and global technology leaders,” Mr. Lisenkov explains. “At the foundation of their businesses are promising high-tech products and a strong and enthusiastic management team. vIRIAL, OptoSense,

Crocus Technology, BIND Biosciences, Selecta Biosciences, and RMT, about whom you will learn more from this brochure, fit this mold. The geographic reach of our projects stretches from St. Petersburg in the west to Novosibirsk in Siberia and extends to Europe, Israel, and the United States. Many of our projects make headlines in global media. In May 2011 the Wall Street Journal called RUSNANO’s investment in Crocus Technology “a boost for a novel memory technology and Russia’s efforts to become a center of electronics production.”

Our team invests in partnerships with the world’s leading investment funds. The European Bank for Reconstruction and Development, ARCH venture Partners, Flagship ventures, Polaris venture Partners, NanoDimension, Sofinnova ventures, IDinvest, and ventech are among them. We are proud to be the first team at RUSNANO to have attracted financing for a Russian portfolio company from a Western investment fund. This occurred in 2009 when CapMan, Scandinavia’s largest investment fund, co-invested in vIRIAL, a producer of nanostructured ceramic goods. To date our partners had co-invested more than $880 million in the team’s portfolio companies. Perhaps this is the best evidence of the promise of our investment portfolio.

Our focus on results and a keen desire to establish a professional reputation for excellence are the keys to our success. We choоse companies that are leaders in their sectors. We develop the right investment strategies and support our projects with the breadth and depth of our collective abilities.

DMITRIY LISENkOv’S TEAM

Energy-efficient and self-cleaning glass – the primary products of the portfolio company – possess extraordinary characteristics thanks to multilayer coatings. By applying special layers ranging in depth from 5 nanometers to 500 nanometers, a window becomes capable of retaining heat within a building and maintaining a comfortable environment inside when it is too warm outside.

The use of energy-efficient windows can reduce heat loss during winter months by as much as 70 percent, and when the weather is warm, the glass prevents heat from permeating the building, reducing heating and cooling expenses. In mass production, the cost to manufacture insulated glass units with energy-efficient glass is only a little more than that of glass units with ordinary glass. Therefore, in many countries of the world, energy-efficient glass has become the standard, accounting for 80 percent to 100 percent of glass installed in new windows.

The agreement among shareholders provides for construction of a new factory in Moscow Oblast, not far from the existing Pilkington plant, which will be modernized as part of the project. The new factory is expected to produce 240,000 tons of high-quality glass per year of which 100,000 tons will be coated glass.

ENERGY-EFFIcIENT AND SELF-cLEANING GLASS The project will be established on the base of Pilkington’s glass plant in Russia and STiS Group www.pilkington.com/europe/russia/russianwww.stis.ru

• Production of high-quality glass and insulated glass units with nano-enabled coatings

ShAREhOLDERS IN ThE pORTFOLIO cOMpANY • RUSNANO• Pilkington Group Limited (NSG Group)• European Bank for Reconstruction and Development• STiS Group

AREAS OF AppLIcATION • Residential construction• Industrial construction

MARkET Producers of windows, builders and siding companies

cOMpETITIvE ADvANTAGES • Reduces heat dissipation by 50 percent • Reduces damage from the sun’s rays and heat entry

on hot days • Uses photocatalysis for self cleaning

pRODUcTION LOcATION Moscow OblastJobs to be created: 300

pROJEcT STAGES

Total budget

$400 million


$203million

project initiation

2012 2014 2015

Factory start up Design capacity


May


This project will carry out full-cycle production of nanostructured ceramic and metal-ceramic tribotechnical items that must withstand friction and heavy wear and function under high temperature and high pressure in corrosive and abrasive environments. The items include bearings, face seal rings, rotary cutting tools, and interchangeable multifaceted blades. vIRIAL will also produce ceramic and metal-ceramic cutting tools that make processing equipment more productive and precise. These tools are designed for operation with extremely hard, durable, and thermally stable metals and composite materials.

Nanostructured materials offer important advantages over metals and polymers: greater wear resistance, operation in a broader temperature range, and chemical inertness. When used in industrial pumping equipment, nanostructured materials increases reliability and service life by 20 percent to 30 percent.

In August 2011 vIRIAL launched a new line for high-tech manufacturing at its St. Petersburg factory. As a result, the company raised production output to 1.2 million items. The higher production volume and a broader selection of goods enabled vIRIAL to raise sales to 700 million rubles in 2011, 17 percent above its 2010 sales level.

AbRASION-RESISTANT pARTS FROM NANOSTRUcTURED cERAMIc AND METAL-cERAMIc MATERIALSPORTFOLIO COMPANY vIRIALwww.virial.ru

• Production of durable items of nanostructured ceramic and metal-ceramic materials

ShAREhOLDERS IN ThE pORTFOLIO cOMpANY • RUSNANO• vIRIAL• Siberian Organics• CapMan Russia

AREAS OF AppLIcATION • Oil, chemical, nuclear, cable, mining, and paper and pulp

industries• Metal- and woodworking

MARkET Engineering companies in oil and gas, chemistry and nuclear energy; metal working companies

cOMpETITIvE ADvANTAGES • Ability of machinery to work under extreme conditions• Fewer materials and less energy required to produce goods• Longer service life of machinery and equipment

pRODUcTION LOcATION St. PetersburgJobs created: 200

pROJEcT STAGES

Total budget

$58 million


$22million

production start up

20112009 2014 2015

project initiation

Design capacity

August December

Market share Tooling:

10% domesticceramics:

30% domestic

Portfolio company Crocus Nano Electronics, a joint venture between RUSNANO and Crocus Technology SA, will use Crocus’s technology to create the world’s first dedicated magnetic memory wafer fab for high-volume manufacturing of MRAM devices on 300-mm wafers with feature sizes of 90 nm and 60 nm. The factory will add MRAM-specific processing layers to standard CMOS foundry wafers.

When the project commissions the factory in 2013, it will have capacity to produce 500 CMOS wafers per week. Expanded capacity of up to 1000 wafers per week is anticipated under a second phase of investment.

Silicon valley-based Crocus Technology is a leader in Magnetic Logic Unit™ (MLU) MRAM products and technologies for the semiconductor and electronics industries. In October 2011 Crocus Technology signed an agreement with IBM for engineering work and joint licensing of patents. A month later it signed an agreement with Morpho, one of the world’s top four vendors of identification, detection, and e-document solutions, to develop and commercialize collaboratively the first smart card based on Crocus’s technology.

Crocus Technology is not limiting its activities in Russia to production of MRAM. The company has made commitments to invest up to €3 million in Russian research organizations to improve its technologies. It has already signed the first research contract, with kintech Lab, to develop a programming platform for modeling Crocus’s magnetoresistive memory cells.

MAGNETORESISTIvE RANDOM-AccESS MEMORYPORTFOLIO COMPANY Crocus Technology SA (France)Crocus Nano Electronics (Russia)www.crocus-technology.com

• Development and production of MRAM-based solutions

ShAREhOLDERS IN ThE pORTFOLIO cOMpANY • RUSNANO• ventech• IDInvest Partners• NanoDimension• Sofinnova Ventures• CDC Innovation

AREAS OF AppLIcATION • Security chips based on MLU for smart-cards, electronic IDs, cell

phone SIM-cards• High-temperature memory for automotive engines, oil-drilling,

robotics and other industries• Routing and data transmission devices in telecommunications• Hardware-based search applications

MARkET Producers of chips for smart cards and electronic documents, automation devices for industry, and telecommunications equipment

cOMpETITIvE ADvANTAGES • Non-volatility• High-speed read/write performance • Unlimited write cycles

pRODUcTION LOcATION MoscowJobs to be created: over 100

pROJEcT STAGES

Total budget

€231 million


€97million

project initiation

2011 2013 20162015

production start up

Design capacity

June Q3 Q3


(MRAM)


Uralplastic-N is using know-how in three related areas: production of nanocomposites from clay and ceramics, introduction of nanocomposite additives to polymer packaging material, and manufacturing of modified flexible films with improved qualities.

High-barrier polymer films modified with nanocomposites improve the quality and lengthen the shelf life of products. So, for instance, a prepackaged dinner item can be stored up to five years without requiring preservatives. That is a substantial increase from traditional foil packaging which is expensive and can provide shelf life of only six months to two years. Food packed in the modified material can be heated right in its packaging. While traditional packaging material cannot be recycled or recycling is expensive due to the complex structure of the material, Uralplastic’s product can be reprocessed and serve multiple lives.

The modified polymer film also has improved physical and mechanical properties, such as exceptional tensile strength, resistance to puncturing and blowing. Packaging is thinner, more transparent, and less expensive because fewer layers are needed to produce the high-barrier characteristics.

In October 2011 the company began producing the modified flexible polymer packaging. The factory has been equipped with machinery for preparing nanocomposites from clay and ceramics. The facility is designed to produce 1,800 tons of flexible material per month, roughly enough to wrap 650 million packages of prepared goods.

FLExIbLE hIGh-bARRIER pAckAGING MATERIAL

PORTFOLIO COMPANY Uralplastic-Nwww.uralplastic.com

• Production of high-barrier packaging solutions for storing food and non-food products

ShAREhOLDERS IN pORTFOLIO cOMpANY • RUSNANO• Uralplastic

AREAS OF AppLIcATION • Food products• Detergents and other household products• Cosmetics• Industrial chemicals

MARkET Producers of fast-moving consumer goods, chemical companies

cOMpETITIvE ADvANTAGES • High barrier properties, impermeable to oxygen and water vapor • Better physical and mechanical properties • Package is thinner by 20 percent to 30 percent

pRODUcTION LOcATION Aramil, Sverdlovsk OblastJobs created: 450

pROJEcT STAGES

Total budget

$88 million


$37million

project initiation

2010 2011 2013 2015

production start up

Design capacity

January October January


NEvZ-CERAMICS will expand manufacturing of products in high demand: ceramic insulators for electric power, check valves for the oil and gas industry, armored gear and panels for armored vehicles and body protection, ceramic substrates for LEDs and other semiconductor devices, and thermoelectric modules. NEvZ-CERAMICS will also produce promising ceramic implants for advanced surgical treatment of spinal cord and joint injuries and diseases and for dentistry.

The company adds nanopowders to its ceramics to decrease the material’s porosity and increase its density. By using ultrasound compacting, a method for dry formation of nonplastic ceramic powders, it ensures mechanical stability and uniform pressed density without employing plasticizing agents. After the compacted particles have been baked using microwave sintering and passed through hot pressing and spark plasma sintering, they retain their nanostructures. Average grain size in the ceramic material is 100 nanometers.

NANOSTRUcTURED cERAMIcS

PORTFOLIO COMPANY NEvZ-CERAMICSwww.nevz-ceramics.com

• Production of nanostructured ceramics for use in a wide range of industries

ShAREhOLDERS IN ThE pORTFOLIO cOMpANY • RUSNANO• Novosibirsk Electrovacuum Plant–Soyuz

AREAS OF AppLIcATION • Defense • Oil and gas• Industrial engineering • Power engineering • Orthopedics and dentistry

MARkET Producers of electrical equipment, armored gear and equipment, equipment for the oil and gas industry, medical and laboratory equipment

cOMpETITIvE ADvANTAGES • Durable, high-strength, light-weight material• Controllable thermal transmission and electrical properties

pRODUcTION LOcATION NovosibirskJobs to be created: 350

pROJEcT STAGES

Total budget

$83 million


$27 million

project initiation

2011 2013 2014 2015

production start up

Design capacity

September March April


5% global


Selecta Biosciences, Inc. is a leader in development of synthetic nanovaccines and immunotherapies. Selecta’s lead drug candidate, SEL-068, has entered human clinical studies as a vaccine for smoking cessation and relapse prevention. Other drug development programs include universal human papillomavirus vaccine, universal influenza vaccine, malaria vaccine, and type 1 diabetes therapeutic vaccine.

Selecta’s patented technology originated in laboratories at Harvard Medical School under the direction of Professor Omid Farokhzad, MD and in laboratories at MIT under the direction of Professor Robert S. Langer. Professor Langer is a renowned scientist and a recipient of the National Medal of Science, the most prestigious honor for scientists bestowed by the United States, and an author of approximately 850 patents issued or pending worldwide. Professor Ulrich von Andrian, MD, PhD, head of the immunopathology laboratory at Harvard Medical School, is also a founder of Selecta.

This project enables Selecta Biosciences to open a laboratory and a manufacturing facility in Russia through a Russian subsidiary. By broadening its scientific and financial bases, Selecta Biosciences will be able to accelerate vaccine development. It gains access to rapidly growing pharmaceutical markets in Russia and the CIS and maximizes its technical platforms for creating new vaccines. The portfolio company will establish full-cycle development of pharmaceuticals – from research and testing through production and commercialization.

vAccINES bASED ON SELEcTA bIOScIENcES’S tSvpТМ NANOpLATFORM PORTFOLIO COMPANY Selecta Biosciences, Inc., Selecta RUSwww.selectabio.com

• Development and commercialization of an entirely new class of targeted vaccines that induce antigen-specific immune activation or antigen-specific immune tolerance for therapeutic and prophylactic applications

ShAREhOLDERS IN ThE pORTFOLIO cOMpANY • RUSNANO• Flagship ventures• Polaris venture Partners• OrbiMed Advisors• NanoDimension• Other investors

AREAS OF AppLIcATION • Prevention and treatment of cancers and infectious

and autoimmune diseases• Therapies for nicotine dependence

MARkET Healthcare providers and their patients

cOMpETITIvE ADvANTAGES • A new pharmaceutical platform for prophylactic

and therapeutic vaccines • Optimal immunological response • Minimal side effects • Low cost of production

R&D LAb LOcATION khimki, Moscow OblastJobs created: 20

pROJEcT STAGES

Total budget

$47 million


$25million

project initiation

2011 2012 2015–2016

R&D lab start up production start upNovember

B-Cell Antigen

T-Cell Antigen

Adjuvant

pathogen(e.g. influenza virus )

tSvpTM

(targeted Synthetic vaccine Particle)

Biocompatible Matrix

BIND biosciences develops targeted therapeutics, called Accurins™, that selectively accumulate at the site of disease to dramatically enhance effectiveness for treating cancer and other diseases. BIND’s lead candidate, BIND-014, is in human clinical trials as a targeted therapy for cancer treatment. BIND’s development pipeline also includes other cancer treatments and drugs for anti-inflammatory and cardiovascular conditions.

Russia-based BIND RUS and its US parent, BIND Biosciences, are responsible for developing BIND Accurins™ targeted delivery platform. The partial transfer of R&D to Russia and the involvement of local, highly qualified experts will boost the development of innovative drugs. These innovative pharmaceuticals will enter Russian and global markets simultaneously.

BIND’s patented Accurins™ platform together with Selecta Biosciences’s tSvP™ vaccine platform originated in laboratories at Harvard Medical School under the direction of Professor Omid Farokhzad, MD and in laboratories at MIT under the direction of Professor Robert S. Langer. Professor Langer’s lab is renowned for research work on targeted drug delivery technology. Robert Langer is a recipient of the National Medal of Science, the most prestigious honor for scientists bestowed by the United States, and an author of approximately 850 patents issued or pending worldwide.

phARMAcEUTIcALS bASED ON ThE bIND bIOScIENcES’S AccURINS™ NANOpLATFORMPORTFOLIO COMPANY BIND Biosciences, Inc., BIND RUSwww.bindbio.com

• Development and commercialization of a new class of highly selective targeted therapeutics based on BIND Biosciences’s Accurins™ nanoplatform

ShAREhOLDERS IN ThE pORTFOLIO cOMpANY • RUSNANO• Flagship ventures• Polaris venture Partners• ARCH venture Partners• NanoDimension• Other investors

AREA OF AppLIcATION Treatment of oncological, cardio-vascular, inflammatory and other diseases

MARkET Healthcare providers and their patients

cOMpETITIvE ADvANTAGES • Platform for rapid development of innovative pharmaceuticals • Highly effective drugs• Lower toxicity • Fewer side effects

R&D LAb LOcATION khimki, Moscow OblastJobs created: 20

pROJEcT STAGES

Total budget

$47 million


$25million

project initiation

2011 2012 2015-2016

R&D lab start up production start up

November

Targeting ligand

Stealth and protective layer

Controlled release polymers

Therapeutic payload


RMT Ltd is manufacturing thermoelectric micromodules based on the Peltier effect. The modules provide cooling, local heat dissipation, and heat regime maintenance for a variety of instruments and devices: semiconducting and other lasers, powerful LEDs, highly sensitive photo detectors, ICs, microprocessors, and biomedical instruments. These miniature thermoelectric coolers, the specialty of project initiator RMT, are integrated into microelectric units, thereby providing the most efficient cooling – the closer the cooling element is to the heat source, the more effectively the unit works.

The project opened a pilot production base in May 2011 in Moscow. In November of that year, it began operations at its main manufacturing facility in the Ankudinovka Technopark in Nizhny Novogorod.

RMT Ltd is an outstanding example of how a scientific advance made by Russian specialists is commercialized and its production is later expanded to meet demand from foreign companies for an innovative product. RMT exports 80 percent of its output to the United States, Canada, Japan, Europe, and Southeast Asia.

ThERMOELEcTRIc MIcROcOOLERS

PORTFOLIO COMPANY RMT Ltdwww.rmtltd.ru

• Producton of thermoelectric microcoolers using bismuth telluride nanopowder for optic-, micro-, and nanoelectronics

ShAREhOLDERS IN ThE pORTFOLIO cOMpANY • RUSNANO• S-Group venture• Private shareholders

AREAS OF AppLIcATION • Optic-, micro-, and nanoectronics• Laser equipment• Instruments-making • Biomedicine

MARkET Producers of lasers and electronics

cOMpETITIvE ADvANTAGES • High quality products • Low production costs • Rapid fulfillment of orders • Engineering support for customers • Distribution networks in North America, Europe and Asia

pRODUcTION LOcATIONS Moscow, Nizhny NovgorodJobs to be created: up to 320

pROJEcT STAGES

Total budget

$27 million


$14million

project initiation

2010 2011 2015

production start up Design capacity


September May July

The project makes unique use of semiconductor polycrystalline nanosized layers in mass production of radiation sources and photovoltaic receivers – a sensor’s key elements. OptoSense produces infrared optical sensors that distinguish themselves for the rapidity with which they react (5.5 seсonds compared with 10 seconds for competing devices), their service lives of seven years compared with five years for competing devices, and their low energy consumption (average consumption of 7 mW compared with 200 mW for competing devices). OptoSense sensors continue to operate effectively when humidity is high and oxygen is absent. These considerable advantages ensure demand for the sensors in Russia and in the global market.

OptoSense’s production technology for infrared-optical sensors overcomes a number of problems that hamper other sensors in the industrial safety market such as ineffectual performance when humidity is high, lackluster reaction time, periodic downtime for battery discharge caused by high levels of energy consumption.

In December 2011, at its St. Petersburg factory, the company commissioned a new production line for optical components, which are key elements in sensors of explosive gases. The line has enabled OptoSense to expand production up to 120,000 sensors per year. Its products have been certified as meeting international standards of ATEx and IECEx for operations in explosive gas environments.

OptoSense exports its goods to the United States and countries in Europe.

ExpLOSIvE GASES SENSORS

PORTFOLIO COMPANY OptoSensewww.optosense.ru

• Production of innovative sensors for industrial safety systems

ShAREhOLDERS IN ThE pORTFOLIO cOMpANY • RUSNANO • ICO• REkS• EMI

AREAS OF AppLIcATION • Oil and gas • Coal mining• Chemicals• Power engineering• Utilities • Telecommunications

MARkET Producers of gas analysis equipment for industrial use

cOMpETITIvE ADvANTAGES • Low energy consumption • Small dimensions• Operation within a wide temperature range• Resistance to corrosive gases• Lengthy service life

pRODUcTION LOcATION St. PetersburgJobs to be created: up to 110

pROJEcT STAGES

Total budget

$17 million


$7million

project initiation

2010 2011 2013 2015

production start up

Design capacity

April April Q3

Market share up to 5% global


The project is based on patented technology ALOx™ from Israeli company MCL. Substrates manufactured with the technology are made of a conducting layer of aluminum or copper and a dielectric material with nanopourous structure. The dielectric material creates considerable competitive advantage: pores measuring 65 nanometers to 90 nanometers that have been suffused with special nanofillers achieve thermal conductivity of up to 200 W/m*k, dielectric breakdown voltage of more than five kilovolts, and good thermomechanical properties.

Substrates produced with ALOx™ technology have passed all necessary testing, including tests for thermal reliability. RUSALOx’s products outstrip alternatives on basic consumer characteristics – heat conductivity, by hundreds of times; price, by 20 percent to 30 percent; and reliability, by two orders of magnitude. Leading international players in the LED market are currently considering using the company’s products.

Commissioned in February 2012, RUSALOx’s factory is the first in Russia to produce high thermal conductivity substrates and panels for electronic devices, primarily for LEDs requiring superior heat sinks. In its first phase of operations, the vladimir factory will produce 10,000 panels per month, providing enough output to assemble more than one million LED lamps.

hIGh ThERMAL cONDUcTIvITY LED SUbSTRATES

PORTFOLIO COMPANY RUSALOx (formerly MCLR)www.rusalox.ru

• Production of high thermal conductivity substrates for ultrabright LEDs and other electronic devices using proprietary ALOx technology

ShAREhOLDERS IN ThE pORTFOLIO cOMpANY • RUSNANO• MCL (Israel)• Tamir Fishman CIG (with participation of Russian venture

Company)

AREAS OF AppLIcATION • LED lighting systems• Electronic devices requiring superior heat sinks

MARkET Producers of LED lighting and electronics

cOMpETITIvE ADvANTAGES • High thermal conductivity • High breakdown voltage• Excellent thermomechanical properties• Competitive pricing

pRODUcTION LOcATION vladimirJobs created: up to 120

pROJEcT STAGES

Total budget

$29 million


$4million

2010 2012 2015

project initiation production start up Design capacity

Market share 1.6% global

December February March


Dmitry Pimkin’steam

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Dmitry PIMKIN

Managing Director RUSNANO

Dmitry Pimkin joined RUSNANO in 2009. He heads one of six business teams that carry out RUSNANO’s investments in high-tech businesses working with nanotechnology.

From 2004 through 2008, Mr. Pimkin worked at PromSvyazCapital Group, a diversified investment conglomerate, where he held various positions and was promoted to investment director. During those four years, he took part in developing many innovative investment projects from their start and contributed to the growth of companies in which PromSvyazCapital had invested.

From 2002 through 2004 Mr. Pimkin worked at Ernst & Young and before that, at the publishing house Securities Market where he co-founded business magazine Managing a Company.

Mr. Pimkin graduated with honors from the Moscow Aviation Institute, Department of Economics, in 2003.

"IN SElECTING PROjECTS, OUR PREFERENCES GO TO THE lEADERS IN THEIR SECTORS, THOSE WHO HAvE UNIqUE TECHNOlOGY AND STRONG TEAMS."


Portfolio company SITRONICS-Nano is producing integrated microchips with 90-nanometer technology norms at the Zelenograd manufacturing base of Mikron, the leading microelectronics producer in Russia. Mikron is a part of the Russian holding company Sistema.

SITRONICS-Nano has positioned itself for growth in rapidly expanding segments of the microelectronic components market: GlONASS/GPS navigation systems, industrial electronics, and chips with extended functionality for biometric passports and other personal documents, credit and social security cards, SIM cards, and RFID tags. These new integrated circuits are high performers with large memories. They are low energy consumers, and their protective mechanisms are extremely reliable.

The project partners with one of the world’s leading producers of semiconductor devices – STMicroelectronics.

VLSI MIcROchIpS WITh 90-NM pROcESS TEchNOLOGYPORTFOlIO COMPANY SITRONICS-Nanowww.mikron.sitronics.com

• Establishment of new 90-nm microchip production and design center

Our team’s portfolio includes 14 manufacturing projects and six nanotechnology funds, one of which was established together with Draper Fisher jurvetson, a leading venture capital investor out of Silicon valley. The portfolio reached $1.8 billion in late 2011; of this amount, RUSNANO had invested or committed $880 million.

We use a diversified approach to building our portfolio and financing projects. It largely focuses on two stages of a company’s development – early growth and expansion. Our strengths are in helping companies take their products into the market and in supporting growth of these businesses. When we encounter interesting projects at earlier stages – seed and start-up – we turn to one of the six funds dedicated to financing product development and R&D for project consideration. Projects that have grown with the funds’ investments enter a pipeline for RUSNANO financing in the next funding rounds.

We develop projects in several areas of nanotechnology: semiconductors, energy efficiency, energy efficient materials, special chemistry, nano-enabled composite materials, and telecommunications. We chose these sectors, fast growing in Russia and worldwide, because of the synergy with the experience and knowledge of our team members. We also see great market opportunity in organic conductors, bio-recycling of organic materials, and alternative energy sources.

In selecting projects, our preferences go to the leaders in their sectors, those who have unique technology and strong teams fully capable of realizing the potential of the market.

ShAREhOLDERS IN pORTFOLIO cOMpANY

• RUSNANO • Mikron • Amex • SITRONICS • Sistema

AREAS OF AppLIcATION

• Computing electronics• Industrial electronics• Navigational systems• Smart cards and biometrical documents • Monitoring and safety systems

MARkET Russian OEM producers of electronic devices

cOMpETITIVE ADVANTAGES

• Most advanced domestic producer of microchips• Proprietary microcircuit design and development center

pRODUcTION LOcATION Zelenograd jobs to be created: over 300

pROJEcT STAGES

Total budget

$561 million


$281million

Dmitry Pimkin’s team

project initiation

2010 2012 2014 2015

production start up

Design capacity

january February june



RUSNANO and NIKOCHEM Group, a leading chemical holding company in Russia, are participating in a major investment project for production of two products: a flame-retardant additive of nanostructured magnesium hydroxide with modified surface and high purity synthetic magnesium. Total investment in the project is exceeds $100 million.

Nanostructured magnesium hydroxide with modified surface is in high demand for production of plastics and filled (co)polymer compositions based on PvC, PA, PS, PP, PE, PET, production of paper and paperboard, as a neutralizing agent for water treatment, and as feedstock for the pharmaceutical industry. High purity synthetic magnesium is used in the production of transformer steel for insulation blanket formation, as a vulcanizing agent for rubber production, as a filler in production of rubber, plastics, putties, adhesives and for production of refractories. It is also used in medicine and cosmetics and as a component of drilling fluids.

The project aims to create a company that will become a world market leader. Competitive advantages of the project are its raw material base of bischofite deposits and lengthy extraction licenses. They ensure the portfolio company of raw materials for the next 150 years. In addition, the company has an excellent infrastructure base and a professional management team with many successes in the chemical industry. The project is socially very significant. Nanostructured magnesium hydroxide, a non-toxic inorganic flame-retardant additive, will dramatically reduce property loss from fire, which in Russia is calculated in the billions of dollars, and deaths from smoke and gases that accompany fire.

The portfolio company, which began manufacturing in 2011, produces high-barrier polymer film and flexible packaging materials based on the film. The material is designed mainly for packaging of food, household cleaning products, cosmetics, and pet food.

High-barrier flexible film is heat resistant, making it possible to process contents in hot or cold temperature regimes and to heat products in microwave ovens without unwrapping them. Barrier properties of the film prevent penetration of moisture, oil, fat, petroleum products, most household chemicals, gases, microbes, and Uv radiation, maintaining the quality of the product. That and the fact that preservatives can be greatly reduced and shelf life is extended are significant competitive advantages for Danaflex-Nano’s film.

The project is being undertaken jointly with Danaflex, the Russian leader in the market for polymer film and flexible packaging prepared from it. Danaflex’s managers and shareholders have led the company to above-average growth in every year since its founding in 2001.

NANOSTRUcTURED MAGNESIUM hYDROxIDE AND hIGh pURITY SYNThETIc MAGNESIUM PORTFOlIO COMPANY NIKOMAGwww.nikomag.com

• Production of nanostructured magnesium hydroxide with modified surface and high purity synthetic magnesium

hIGh-bARRIER pOLYMER FILMS AND FLExIbLE pAckAGING MATERIALS PORTFOLIO COMPANY Danaflex-Nanowww.danaflex.info

• Production of high-barrier polymer films and flexible packaging materials derived from them


• RUSNANO • NIKOCHEM Group• Sberbank

AREAS OF AppLIcATION Nanostructured magnesium hydroxide with modified surface:

• Plastics, paper and paperboard, neutralizing agent for water treatment, feedstock for pharmaceutical industryHigh purity synthetic magnesium:

• Transformer steel for insulation blanket formation; production of rubber, plastics, putties, adhesives; production of refractories; oil and gas drilling; medicine and cosmetics

MARkET Producers of soft cable compounds, industrial rubber goods, floor coverings, special polymer composites

cOMpETITIVE ADVANTAGES Nanostructured magnesium hydroxide with modified surface:

• Lower combustibility of polymers, greater safety if fire occurs, advanced production methodHigh purity synthetic magnesium:

• Energy-efficient manufacturing process

pRODUcTION LOcATION volgogradjobs to be created: 150

pROJEcT STAGES


• RUSNANO • Danaflex

AREAS OF AppLIcATION Packaging in several industries:

• Food• Household cleaning products• Cosmetics• Pet food

MARkET Producers of food, household cleaning materials, cosmetics, and pet food


• Reduces preservatives in foodstuff• Extends product shelf life• lowers cost and packaging weight • Uses environmentally-friendly, recyclable materials

pRODUcTION LOcATION Kazan, Republic of Tatarstan jobs created: 600

pROJEcT STAGES

Total budget

$104million

Total budget

$83million


$43million


$41million

project initiation

2009 2011 2013 2015

production start up

Design capacity

Market share 9.9% domestic

project initiation

2010 2013 2015




Thermoelectricity is a promising source of alternative energy, one of the least costly and most reliable. CERATOM’s thermoelectric system generates electricity at $ .07/W, comparable to thermal and nuclear energy and considerably less costly than other alternative energy sources.

Thermoelectricity is used in active cooling, temperature control, and electric power generation when traditional methods of compressor or absorption refrigeration or heat recovery are not available. Thermoelectric modules are used to cool lasers and other equipment in telecommunications, transportation and aerospace industry. They are also used in production processes, and households.

ElvEES, the project applicant, is putting finishing touches on a design center at its location on the outskirts of Moscow. There portfolio company ElvEES NeoTech will develop and contract to produce a variety of integrated microcircuits using 65-nanometer norm technology and later – 45-nanometer. An entire line of innovative products is already being created using ElvEES’s microchips: surveillance cameras with integrated signaling, web cameras, and terminals for professional connectivity to GlONASS.

Transition from 65- to 45-nanometer technology will significantly improve technical characteristics of the products. It will provide new functional qualities and reduce the cost of final goods.

Intelligent network surveillance cameras, webcams, and their microcircuits will be created with design center know-how. The center’s products will be oriented primarily to export markets, although use in the domestic market will raise the competitiveness of domestic solutions for security, business monitoring, and more advanced Internet services.

ThERMOELEcTRIc cOOLING AND GENERATING SYSTEMSPORTFOlIO COMPANY THERMOINTECHwww.thermointech.ru

• Production of thermoelectric systems using CERATOM non-ceramic technology

FAbLESS cENTER FOR 65-NM TEchNOLOGY MIcROchIpS PORTFOlIO COMPANY ElvEES NeoTechwww.elvees.ru

• Design of highly integrated microchips with 65-nanometer and finer technology norms; manufacturing of web cameras and intelligent network video surveillance cameras


• RUSNANO • RIO


• Uninterruptible power supplies for gas distribution substations• Cooling of solid-state and diode lasers• Telecommunications• Power generation• Humidity control

MARkET Producers of lasers and telecommunications equipment and oil and gas companies


• Many configurations ans sizes of thermoelectric modules• High performance• low price

pRODUcTION LOcATION Zelenogradjobs to be created: 200

pROJEcT STAGES


• RUSNANO • Senesys, Inc. (USA)


• Security systems • Business monitoring systems

MARkET Producers of video surveillance equipment and design and construction-assembly companies for security systems


• Superior technical and consumer characteristics • Conceptually new approach for new disruptive applications• lower manufacturing costs

pRODUcTION LOcATION Zelenogradjobs to be created: 370

pROJEcT STAGES

Total budget

$58million

Total budget

$95million


$20million


$36million

project initiation

2011 2012 2015 2016

production start up

january

Design capacityjanuary


project initiation

2011 2012 2015 2017

production start up

May

Design capacity


2% global


Among the many subsets of nanomaterials, quantum dots are like no other. At dimensions typically below 10 nanometers, nanocrystalline semiconductors, metals, and magnetic materials can all exhibit quantum confinement phenomenon. Basically, at the nanometer scale, their physical size encroaches upon the fundamental quantum confinement dimensions of orbiting electrons that are uniquely prescribed by their atomic nucleus.

quantum dots from one material of different sizes glow with different colors. In comparison with traditional florescent materials, quantum dots possess greater photostability and their color remains stable over several years.

Current and future applications of qDs impact a broad range of industrial markets. These include biology and biomedicine; computing and memory; electronics and displays; optoelectronic devices such as lEDs, lighting, and lasers; optical components used in telecommunications; and security applications such as covert identification tagging or biowarfare detection sensors.

cOLLOIDAL qUANTUM DOTS

PORTFOlIO COMPANY Nanotech-Dubnawww.quantum-dots.ru

• Production of colloidal quantum dots with 10-kg capacity


• RUSNANO • TK-1• Scientific Research Institute for Applied Acoustics


• Security• lEDs• labeling studies• Medicine • Future uses: solar modules, flexible electronics, and

optoelectronic devices

MARkET Producers of lEDs, biomedical markers, and electronics


• Variable wavelength of fluorescence spectrum• High photostability• Broad wavelength range• low cost

pRODUcTION LOcATION Dubna, Moscow Oblast jobs to be created: 20

pROJEcT STAGES

Total budget

$2million


$1million

Prepregs are semi-finished composite material produced by saturating a reinforced fibrous base with a uniformly distributed binder. Impregnation is carried out to maintain maximally the physical and mechanical properties of the reinforcing material. Prepreg technology makes it possible to obtain monolithic articles of complex forms with minimal tooling. In civil aircraft, these materials are used to manufacture airplane and helicopter bodies, wings, fairings, propellers, and rotors. Composite materials reduce aircraft weight and, consequently, fuel consumption; they also increase the strength and service life of the carriers.

Use of prepregs in production of blades for wind turbines is a promising market for expansion. In addition, prepregs can be used in the shipbuilding and automobile industries, for making ship hulls and non-weight-bearing auto body parts. In construction, prepregs can be used to reinforce concrete structures. They are adaptable to manufacturing prostheses, medical devices, and sports equipment.

Portfolio company Prepreg-SKM is building competitive domestic production of nanofilled and nanomodified prepregs from carbon fibers for polymer composite materials and finished goods. This will improve the competitiveness of Russian composite materials and significantly increase their use in Russia’s industrial sectors.

pREpREGS – cARbON AND MINERAL FIbER cOMpOSITES PORTFOlIO COMPANY Prepreg-SKMwww.prepreg.ru

• Production of prepregs based on nanomodified carbon and mineral fibers and nanomodified binding materials


• RUSNANO • Holding company Composite


• Aviation and space• Automobile manufacturing and ship building• Construction• Oil and gas production• Pipeline transport• Medicine• Wind power

MARkET Companies engaged in producing airplanes and space vehicles, builders of automobiles and ships, producers of equipment for oil and gas extraction, manufacturers of prosthetics and sporting goods


• Durability and fatigue resistance• Resistance to corrosion and chemicals • Elasticity• light weight

pRODUcTION LOcATIONS MoscowKlimovsk, Moscow Oblast

pROJEcT STAGES

Total budget

$117million


$41million

project initiation

2009 2010 2015


Market share 90% domestic (carbon

fiber composites)

project initiation

2010 2011 2014 2015

production start up

Design capacity

December December

Market share 3%–5% global


Environmental protection is the greatest challenge facing mankind in the twenty-first century. vehicular exhaust emissions are the single largest contributor to atmospheric pollution. Breakthroughs in catalytic converters can significantly reduce pollutants from diesel and gasoline engines.

RUSNANO and Urals Electrochemical Integrated Plant have joined forces to bring the latter’s advances – new, globally competitive, proprietary catalytic converters – to domestic, and later international, markets. RUSNANO’s investment will expand production of the catalytic converters to enable the company to win domestic share in excess of 30 percent and significantly increase exports.

Innovative technology for manufacturing products reduces the size of catalytic particles from hundreds of nanometers to just tens of nanometers, thereby lowering platinum group metals in the converters. The technology does not sacrifice exhaust-reducing capabilities; the new equipment has passed certification confirming its compliance with Euro 4, Euro 5, and Euro 6 standards.

In 2008 General Motors recognized Urals Electrochemical Integrated Plant as one of its best vendors. Over the last 10 years, more than 20 large international and Russian companies have become its customers. The company’s products are already being sold in Europe and Asia.

The Russian-Kazakh Nanotechnology Fund, a ten-year venture capital fund, will attract investments supporting promising projects to introduce nanotechnology and use products from the nanoindustry in several sectors of the economies of the Republic of Kazakhstan and the Russian Federation. In particular, the fund aims to transfer technology and to stimulate development of financial infrastructure for the nanoindustry.

To receive funding, applicants must meet scientific, technical, and investment criteria – relate directly to nanotechnology, offer a scientifically justified, technically feasible and financially viable project, minimize investment risk in legal, marketing, finance, patent, and production technology.

cATALYTIc cONVERTERS FOR AUTOMOTIVE TRANSpORTPORTFOlIO COMPANY Ecoalliancewww.eco-nu.ru

• Production of Euro -4, -5, -6 standard exhaust systems and catalytic converters for diesel and gasoline engines

RUSSIAN-kAzAkh NANOTEchNOLOGY VENTURE FUNDMANAGEMENT COMPANIES vTB Capital, I2BF Holdingswww.vtbcapital.ru; www.i2bf.com

• Transferring state-of-the art technologies, creating instruments for cooperation between Russia and Kazakhstan, and stimulating development of financial infrastructure for the nanotech industry


• RUSNANO • Urals Electrochemical Integrated Plant• ATECS

AREA OF AppLIcATION Automotive components

MARkET Cars and trucks manufacturers


• Fully tested and certified• long life cycle• lower production costs (10%–20%)

pRODUcTION LOcATION Novouralsk, Sverdlovsk Oblastjobs to be created: 170

pROJEcT STAGES

INVESTORS

• RUSNANO • Kazyna Capital Management

AREAS OF INVESTMENT INTEREST

• Energy• Nanotechnology (cleantech)• Telecommunications• Biotechnology • Electronics


• Expertise in science and technology for project selection • Global expertise, I2BF Holdings

FUND’S LIFETIME

10 years

pROJEcT STAGES

Total budget

$61million

Total budget

$100million


$22million


$25million

project initiation

2012 2014 2015 2016

production start up

April March

Design capacity

December


2012 2017

project initiation

q2 q2

end of investment period


DFj-vTB Aurora Innovation & Nanotechnology Fund plans to invest in projects that transfer technology to Russia and that involve a Russian scientific component. It will also invest to develop Russian projects that have promise in international markets.

Draper Fisher jurvetson and vTB Capital will manage the new fund. DFj, a leading global group of venture capital funds, will provide expertise and a large project base. It will also attract highly qualified specialists to Russian projects entering international markets.

The fund will invest in projects in early stages, mostly before commercialization. In later stages, those projects may obtain financing from RUSNANO. This helps to create a synergistic effect in technology commercialization by establishing a financing pipeline for technology business from early to later stages of development.

DFJ -VTb cApITAL AURORA INNOVATION & NANOTEchNOLOGY FUND

MANAGEMENT COMPANIES vTB Capital Asset Management, Draper Fisher jurvetson

www.dfjaurora.com

• Invest in promising nanotechnology projects providing technology transfer to Russia; attract investments to projects based in Russian nanotechnologies that hold potential for success in foreign markets

FUND pARTNERS, LIMITED LIAbILITY

• RUSNANO • vTB Capital


• For Russian companies, access to international capital • For co-investors, access to DFj’s portfolio projects

FUND’S LIFETIME 10 years

pROJEcT STAGES

Total budget

$100million


$50million

2012 2017

Project initiation (fund formation)

january



Sergey Polikarpov’steam

FOST

ERIN

G A

NEW

IND

UST

RY

Sergey POLIKARPOV


Sergey Polikarpov is head of a business unit, member of the Investment Commission of the Executive Board of RUSNANO, and member of the boards of directors of several RUSNANO portfolio companies: Optogan, NIR, Hevel, Unicom, Novosibirsk Chemical Concentrates Plant, Liotech, Erbitech, Rosana, Russian Quartz, RST-Invent, NANOLEK HOLDING LIMITED, SiTime Corporation, BiOptix Diagnostics, Inc., ESTO-Vacuum, Yermakovsky Mining and Smelting Company, and NITOL Group.

Before joining RUSNANO, Sergey Polikarpov worked at Interros Company, where he led a hydrogen energy project. He was also a member of the Board of Directors of American company Plug Power, where he coordinated product commercialization and cooperation with Ballard, GE, and Siemens.

From 2001 to 2004 Mr. Polikarpov was head of Investor Relations at Norilsk Nickel, attracting investments, improving corporate governance, and developing company strategy. In that capacity, Mr. Polikarpov took part in Norilsk Nickel's acquisitions of American company Stillwater Mining, the only producer of palladium in the United States, and Polyus (now Polyus Gold), the largest producer of gold in Russia. During his tenure, Norilsk Nickel's capitalization rose from $3 billion to $17 billion.

In the late 1990s Mr. Polikarpov worked in mergers and acquisitions in the telecommunications industry for company LV-Finans. Sergey Polikarpov began his career in the Analytics Department at investment bank Renaissance Capital. There he participated in elaborating portfolio management strategy.

Mr. Polikarpov received his BSc magna cum laude from Moscow State Technical University of Civil Aviation. He earned an MBA at Harvard Business School.

"WHEN ESTABLISHING BUSINESSES TO COMPETE ON A GLOBAL SCALE, WE PAY PARTICULAR ATTENTION TO CREATING STRONG AND DYNAMIC MANAGEMENT TEAMS. IN TAKING ON THE AMBITIOUS CHALLENGES OF OUR WORK, WE ARE BULL’S-EYE TARGETED ON RESULTS."


Our team manages the largest portfolio at RUSNANO, 27 projects as of April 1, 2012. Assets under management exceed $4 billion. The portfolio is optimally diversified by project volume, risk return path, and technological areas.

We invest in businesses that are growing and in mature industrial enterprise in a variety of sectors. Among them:• Energy efficient technologies – from renewable energy to energy

storage• Electronics• Advanced materials• Pharmaceuticals• Biotechnology

The geography of our projects, beyond Russia, extends to Europe, Asia, and North America. Our partners include the largest industrial and investment groups, top global venture capital/private equity funds, and teams from the most respected scientific institutes.

We actively participate in managing our portfolio companies by taking positions on their boards of directors. When establishing businesses to compete on a global scale, we pay particular attention to creating a strong and dynamic management team.

We launched our first industrial project in 2010. Most of our portfolio companies already have well-established operations and are expanding their businesses. Take, for example, Liotech, one of the largest producers of lithium-ion batteries, or Optogan, the most high-tech and most promising manufacturer of LEDs and lighting technology in Russia.

It requires a group of strong professionals to manage projects of this scale. We have gathered them into our team – seasoned specialists from top investment funds and banks and auditing and consulting firms from Russia and abroad. In taking on the ambitious challenges of our work, we are bull’s-eye targeted on results.

In the pages of this brochure, we have presented only a few of the projects in our portfolio. In addition, we would like to mention briefly the following companies about which you may find more information on RUSNANO’s Internet site:• NANOLEK, manufacturer of pharmaceuticals with nanocarriers for drug

delivery, Orichev district, Kirov Oblast• Optic Fiber Systems, manufacturer of optical fiber, Saransk, Republic of

Mordovia• BiOptix Diagnostics, Inc., manufacturer of diagnostic instruments:

biodetectors and bioslides, Dolgoprudny, Moscow Oblast• EuroTech Transfer, a venture capital fund under management of

Fleming Family & Partners • New Instrumental Solutions, manufacturer of monolithic, hard-alloy

instruments with nanostructured coatings, Rybinsk, Yaroslavl Oblast• NITOL Group, producer of polycrystalline silicon and monosilane,

Usolie-Sibirskoe, Irkutsk• ESTO-Vaccum, manufacturer of vacuum units for ion-plasma deposition

and etching of micro- and nanostructures, Zelenograd• Erbitech, manufacturer of laser-based glucometers for contact-free

blood sampling, Nevinnomyssk, Stavropol Krai• Cathode Materials, manufacturer of cathode material for lithium-ion

batteries, Novosibirsk Oblast

SERGEY POLIKARPOV’S TEAM

Optogan uses ultrabright LEDs to manufacture the latest in energy-efficient lighting systems. Patented technology using gallium nitride and full-cycle production enable the company to produce competitively priced products and control quality at every stage. Optogan’s products are among the best in the industry.

Lighting based on semiconductor nanoheterostructures is consi-de rably more energy efficient, using just one-tenth the electricity of incandescents. Bulb life cycles are much longer. They contain no environmentally harmful substances. With its patented technology, Optogan has achieved record-low defect rates in the semiconductor layer. Its lighting works at full effectiveness even with high current density. These features ensure a high brightness-to-price ratio for Optogan LED chips and the lighting systems.

Optogan’s industrial-scale manufacturing facility is located in St. Petersburg where, in November 2010, the company commissioned its first line for LED mass production. In September 2011, the company released the first LED household bulbs ever serially produced in Russian, the Optolux E-27. With its standard screw base, the bulb can be used in any regular lamp.

The unique technology for chip production was developed by former students of Nobel Prize winner and Russian Academy of Sciences member Zhores Alferov – Maxim Odnoblyudov, Vladislav Bougrov, and Alexey Kovsh. Together they founded German-Finnish company OptoGaN. Today they lead the portfolio company. With the establishment of the new business in St. Petersburg, one of the most promising developments by Russian scientists in recent years has been brought home to the country of its origin.

LEDS AND ENERGY-SAVING LED LIGhTING

PORTFOLIO COMPANY Optoganwww.optogan.ru

• Production of ultrabright nanoheterostructured LEDs and LED-based lighting systems using proprietary technology

ShAREhOLDERS IN PORTFOLIO cOMPANY

• RUSNANO• RIC – Republican Investment Company, Sakha Republic (Yakutia)• ONEXIM Group• Management

AREAS OF APPLIcATION

• Lighting industry, all segments • Consumer electronics

MARKET Producers of lighting systems and consumer electronics, individual consumers, and industrial companies and trade centers

cOMPETITIVE ADVANTAGES

• Patented technology for LED production meeting world-class standards

• Vertically integrated production including R&D• Competitive prices

PRODUcTION LOcATION St. PetersburgJobs created: 400

PROjEcT STAGES

Total budget

$157 million


$77 million

Project initiation

2009 2010 2012 2015

Production start up

Design capacity

June November December

Market share

30% domestic


Under this project, SiTime, an analog semiconductor company, will open a division in St. Petersburg where Russian researchers will design and develop the next generation of microelectromechanical oscillators.

SiTime specializes in systems for generating synchronization signals. Its products are used in electronic equipment for data transmission. Most of the systems employ quartz resonators that are produced and assembled individually. Quartz resonators are the sole detail that cannot be built into a CMOS integrated circuit. MEMS nanoresonators solve that problem: they can be built into any CMOS crystal that is compatible with SIP (system-in-package) or MCM (multichip module) technology.

SiTime products offer the advantages of exceptional temperature stability, precise digital frequency control, long service lives, and low energy consumption. Products are in high demand for infrastructure solution in telecommunications, computing, navigation systems, sensor networks for environmental control, and in other systems. The global market for synchronization devices – resonators, generators, and synchronizing chips – is currently valued at $5 billion and the Russian market, at $80 million.

SILIcON MEMS-bASED OScILLATORS AND cLOcK GENERATORSPORTFOLIO COMPANY SiTime Corporationwww.sitime.com

• Engineering and development of MEMS oscillators

ULTRA hIGh-FREqUENcY RFID chIPS AND INTEGARTED SYSTEMSPORTFOLIO COMPANY RST-Inventwww.rst-invent.ru

• Production of metal RFID tags and RFID labels for passive RFID systems


• RUSNANO • Greylock Partners• Bosch • JAFCO Ventures• New Enterprise Associates • CampVentures• The CID Group • Northgate Capital• Grazia Equity • SiTime management


• Wireless and telecommunications• Local networks• Information technology• Consumer electronics

MARKET Producers of hardware and software for telecommunications and wireless networks, producers of consumer electronics, computer sciences companies

cOMPETITIVE ADVANTAGES MEMS oscillators have numerous advantages over quartz oscillators:

• Greater flexibility – on demand oscillators• Greater accessibility – any frequency, including fractionals• Smaller resonator – .5 millimeter × .5 millimeter• Price of oscillators declines with downsizing

PRODUcTION LOcATION St. Petersburg Jobs to be created: 20

PROjEcT STAGES


• RUSNANO• Systematica• Private co-investor


• Retail • Warehouses• Libraries • Construction industry• Transport and logistics

MARKET Producers of fast-moving consumer goods, retail stores, logistics and transportation and companies, building companies, industrial enterprises, and libraries and archives


• Ability to read/write quickly and at considerable distance • Lower energy use• Operational within broad temperature range • Meets European standard EPC Gen 2• Optimal integration solutions

PRODUcTION LOcATION St. PetersburgJobs to be created: 90

PROjEcT STAGES

Financing round, total volume

$17 million

Total budget

$21 million


$14 million


$6 million

Portfolio company RST-Invent is using 90-nanometer technology to manufacture a new generation of ultra high-frequency RFID-chips to EPC Class-1 Generation-2 standards. Application of 90-nanometer process to RFIDs has brought a breakthrough in downscaling size, energy consumption, and cost of the chips.

The chips have built-in support for electronic digital signature technology GOST R 34.10-2001, which protects the goods against counterfeiting, making RST-Invent’s product a strong competitor in a growing market.

The chips are being used to develop new tags as well as to update existing RFID tags, like the PatchTag™, a market leader in distance of registration among passive universal tags. RST-Invent will create other tag forms specifically for the new chip. One is the iNano family of adhesive tags that will feature greater read and write distances thanks to antennas with greater amplification gain and the 90-nanometer process technology.

Project initiation

2011 2012 2012 2015

Production start up

Design capacity

October Q1 Q4


2011 2015

Project initiation

May


(MEMS oscillators)


This project centers on technology for manufacturing paving asphalt modifiers with micro- and nanomosaic structures based on active rubber powder. The Unirem modifier is produced by grinding used tires at high temperatures and under high pressure. After the addition of the modifier, road surfaces become highly durable, extending the time between road repairs by 25 percent to 30 percent.

During five years of monitoring conditions on roads with Unirem modifier, studies confirmed that the paving was more durable: The new surfaces were less susceptible to deformation from cyclical high and low temperatures and had greater resistance to shift. There were unaffected by water. They did not crack or develop ruts. Based on tests of the Unirem modifier, the Federal Highway Agency, Ministry of Transportation of the Russian Federation, approved its use for construction, reconstruction, capital repair, and maintenance of the country's roads and highways.

Last year 5,710 tons of Unirem were added to asphalt-cement material that was used to pave more than nine million square meters of roads and highways in the country. That work was part of a national effort to improve road infrastructure. The market for road surface modifiers in 2015, given the amount of construction, reconstruction, and repair expected, is estimated at more than $340 million.

The project is building a production complex with daily processing capacity of 80 tons of meat and 40 tons of keratin-containing stock. The facility will produce keratin and functional meat proteins. Using micro-, ultra-, and nanofiltration, it will also produce functional nanocompositions with low-molecular peptide and amino acid fractions.

Functional keratin contains a large amount of sulfur-rich amino acids used in animal feed, pharmaceuticals, biotechnology, and cosmetics. Functional proteins contain the complete set of amino acids, including isoleucine, leucine, and valine, which are essential to muscle formation. Functional nanocompositions based on meat proteins have hypoallergenic, immunomodulating, and antioxidant properties, making them suitable for special diets, children’s food, sports nutrition, and enteral feeding.

ROAD PAVING MODIFIER UNIREM

PORTFOLIO COMPANY Unicomwww.nk-group.ru

• Production of composite material Unirem for road paving using nanostructured rubber powder to modify an asphalt-bitumen mixture

FUNcTIONAL PROTEINS AND PEPTIDES OF ANIMAL ORIGIN

PORTFOLIO COMPANY Rosanawww.rsna.ru

• Production of functional animal proteins for use in the industry, pharmaceutical and cosmetics, animal husbandry, and biotechnology


• RUSNANO• Novy Kauchuk


• Road building• Airport facilities

MARKET Road-construction companies


• Greater durability and longer service life• Fewer ruts and reflective cracks • Greater resistance to water and ice• Less costly road repair and maintenance

PRODUcTION LOcATION Podolsk, Moscow OblastJobs to be created: 250

PROjEcT STAGES


• RUSNANO • Private co-investor


• Food industry • Animal husbandry• Pharmaceuticals and cosmetics• Biotechnology

MARKET Producers of foodstuff, animal feed, and pharmaceuticals and cosmetics


• Balanced amino acids • Hypoallergenic• Highly soluble• Low cost of production

PRODUcTION LOcATION Belgorod OblastJobs to be created: 166

PROjEcT STAGES

Total budget

$63 million

Total budget

$157 million


$44 million


$77 million

Project initiation

2010 2011 2014 2015

Production start up

Design capacity

January March July


Project initiation

2010 2012 2013

Production start up

December August

Design capacity

Size of the market $100 million

January


In December 2011, in the Siberian city of Novosibirsk, Liotech launched the world’s largest factory for high-capacity lithium-ion batteries. It is, as well, the first mass production plant for lithium-ion batteries in Russia.

Liotech is a joint enterprise of RUSNANO and a leading international battery manufacturer. The factory produces batteries with 240-, 380-, and 770-ampere-hour capacity, using nanostructured cathode material lithium-ferro-phosphate (LiFePO

4). In industrial-scale

production, this material achieves the best battery properties. The factory has design capacity of more than one gigawatt, or roughly a million batteries – sufficient wattage to support 5,000 electric buses for an entire year.

The batteries are intended for all types of electric vehicles, particularly buses with electric engines. A battery can be used in an electric vehicle for up to 13 years or 600,000 kilometers – in power generation, up to 30 years. One full charge will power a bus 300 kilometers; should longer distance be required, an express charge can be completed in 20 minutes. The batteries operate in the cold and do not require special servicing. They are environmentally clean and safe. By far their most important characteristic is their capacity for full utilization.

hIGh-cAPAcITY LIThIUM-ION bATTERIES

PORTFOLIO COMPANY Liotechwww.liotech.ru

• Production of lithium-ion batteries for electric vehicles and energy supply systems


• RUSNANO• Chinese industry player


• Electric transport• Power industry

MARKET Producers of electric buses and trucks, energy supply and storage systems


• High-capacity batteries • No memory effect after numerous charge-discharge cycles • Express charge (70% in 20 minutes)• International certificate attesting to safety and durability • Battery life: 600,000 kilometers or up to 13 years• Electric buses: 300 kilometers between charges

PRODUcTION LOcATION NovosibirskJobs to be created: 532

PROjEcT STAGES

Total budget

$460 million


$257 million

Project initiation

2010 2011 2013 2015

Production start up

Design capacity

June December Q1

Market share Up to

100% domestic 7% global

Portfolio company Russian Quartz will produce quartz concentrates at the Kyshtym Mining facility in Chelyabinsk Oblast. Under the project, the field-based complex, which is currently mining and processing quartz and preparing high-purity concentrates, will be technically upgraded. The quartz concentrates are feedstock for obtaining high purity quartz with many high-technology applications: microelectronics, heavy-duty and ultraviolet lighting, special-purpose optics, and quartz ceramics, to name a few.

The project to upgrade the complex will be implemented over three years in two phases. When phase two is finished, the company’s annual production capacity will have grown nearly sevenfold: from 1,500 tons to 10,000 tons of quartz concentrate with purity ranging from IOTA Standard to IOTA 6 grade.

In the first phase, scheduled for completion in mid-2012, the complex will bring quartz concentrate production to 6,000 tons annually. Currently world market of high-purity quartz concentrate stands at 60,000 tons per year. High demand from solar energy is creating a shortage. RUSNANO's investment will enable Kyshtym Mining to increase its sales in a market that will continue to grow.

Once domestic production of quart concentrates reaches required amounts, Russia will have the entire vertically integrated production chain for polysilicon in place – from mining raw quartz and preparing concentrate to production of the quartz crucible and the industrial equipment for obtaining silicon monocrystals with purity of 6N to 12N.

hIGh PURITY qUARTz cONcENTRATES

PORTFOLIO COMPANY Russian Quartzwww.russianquartz.com

• Modernization and expansion of high purity quartz production at the Kyshtym Mining production facility and quartz deposit

ShAREhOLDERS IN PORTFOLIO cOMPANY • RUSNANO• Kyshtym Mining• QuartzVIK

AREAS OF APPLIcATION • Electronics• Solar energy• Lighting engineering• Medical equipment• Chemical industry

MARKET Producers of semiconductor electronics, solar modules, optics, equipment for the chemical industry

cOMPETITIVE ADVANTAGES • High degree of purity • Low production costs

PRODUcTION LOcATION Kyshtym, Chelyabinsk OblastJobs to be created: 60

PROjEcT STAGES


$77 million


$25 million

Project initiation

Production start up

2011 2012 2014 2015

December April

Design capacityJanuary



Project company Hevel is establishing a factory in Novocheboksarsk where it will carry out full-cycle production of solar modules. The plant is being designed to produce one million solar modules per year, an annual output of 130 megawatts. In its production process, Hevel will use the world's latest thin film advance – technology for thin film photo elements based on micromorph silicon developed by the global leader in solar energy, Oerlikon Solar.

Markets for the solar modules are mainly in southern Europe (Italy and Spain) and in Germany. As the market grows in Russia, increasing percentages of solar module output will go to sales at home.

On February 2, 2012, the Science and Technology Center in Thin Film Technologies for Energy opened at the Ioffe Physical Technical Institute in St. Petersburg. Hevel and innovation center Skolkovo will use the center jointly. The dedicated research facility – Russia’s first in solar energy – has an experimental process line of .5 megawatts for work to refine technical characteristics of thin film photoelectric modules.

Beneq is a supplier of production and research equipment for advanced thin film coatings. The company serves the cleantech and renewable energy fields and is at the forefront of applications development in solar power technology, energy conservation, flexible electronics, and strengthened glass. Beneq is using its thin film experience and industry-proven equipment to increase the efficiency of crystalline silicon and thin film solar cells, to produce transparent conductive oxide (TCO) coated glass and to make touch screen glass more durable. Beneq has introduced its innovations within its coating technologies, including true roll-to-roll atomic layer deposition (ALD) and high-yield atmospheric aerosol coating nAERO®

As part of its planned expansion into existing and emerging markets, Beneq commonly establishes collaborative activities with research centers, universities, and centers of excellence in regions where demand for its solutions is high and growing. In the short term, Beneq plans to initiate more activity centers, including one in Russia, where company will further develop applications and equipment for the needs of customers in Russia and the CIS.

In 2015 Beneq plans to hold significant positions in markets worldwide: 90 percent of the market for ALD glass strengthening, 60 percent to 70 percent in c-Si passivation, and 50 percent in CIGS buffer layers for solar panels, and 45 percent in OLED encapsulation market.

ThIN FILM SOLAR MODULES AND SYSTEMS

PORTFOLIO COMPANY Hevelwww.hevelsolar.com/en

• Manufacture thin film photovoltaic modules based on Oerlikon technology

ThIN FILM TEchNOLOGY AND EqUIPMENT

PORTFOLIO COMPANY Beneq Oywww.beneq.com

• Development of business platforms for applying Beneq Oy’s technology (ALD and aerosol technology nAERO and nHALO) in commercial production and R&D in Russia and CIS countries

PARTIcIPANTS IN PORTFOLIO cOMPANY

• RUSNANO• Renova Group

AREA OF APPLIcATION Solar energy

MARKET Producers of photoelectric systems for independent and reserve energy supply, solar farms, energy distribution companies, individual consumers


• Proprietary R&D center• Low production costs• Better efficiency• Large-scale manufacturing

PRODUcTION LOcATION Novocheboksarsk, Chuvash Republic Jobs to be created: 300

PROjEcT STAGES


• RUSNANO• Inventure Oy• Via Venture Partners• Management


• Solar modules• Optics and lighting equipment• Organic and flexible electronics

MARKET Producers of solar panels, screens for home and portable electronics


• Large area of treated surface• Precise application in layers ranging from one nanometer to

1,000 nanometers• Uniform coating for complex surfaces• Self-cleaning surfaces

PROjEcT STAGES

Total budget

$682 million


€28 million


$458 million


€25 million

Project initiation

2009 2012 2013 2015

Production start up

Design capacity

June July


2012 2015

Project initiation

Q1

Market share 20% – 90% depending on segment

global


Under the project, Monocrystal is producing three products in high demand in global markets:• Sapphire cylinders: single-crystal sapphires in cylindrical form for

production of sapphire wafers• Sapphire wafers: the base on which to grow layers of gallium nitride,

silicon, and other materials for use in opto- and microelectronics • Aluminum, silver, and aluminum-silver pastes: essential components

for metalizing silicon solar elements

Thanks to special properties in its crystalline lattice, moderate manufacturing costs, and amenability to production in needed quantities, synthetic sapphire has become the material of choice for preparing wafers to manufacture ultrabright LEDs, microwave ICs, and optical devices.

Sapphire wafers are, as well, the feedstock for producing nanoheterostructures of gallium nitride, aluminum, and indium. Wafers four inches in diameter are used broadly to manufacture light-emitting and laser diodes in the blue, green, and ultraviolet spectrums. Blue LEDs are the basis of solid-state sources of fifth-generation (white) LEDs. In microwave engineering, nanostructures of gallium nitride and aluminum are deposited onto wafers as large as six inches in diameter.

Monocrystal currently holds worldwide market shares of 25 percent in synthetic sapphires and 15 percent in aluminum compounds for solar modules.

SYNThETIc SAPPhIRE AND SAPPhIRE WAFERS

PORTFOLIO COMPANY Monocrystalwww.monocrystal.com/en

• Manufacture sapphires and sapphire wafers for production of LEDs and compounds for photovoltaics


• RUSNANO• Concern Energomera


• Micro- and optoelectronics• Mechanical engineering and instrument making• Medicine• Solar energy

MARKET Producers of liquid crystal panels, lighting, mobile de-vices, solar panels, and telecommunications equipment


• High-purity material: > 99.997%• Low titanium content: < 1 ppm• Low dislocation density: < 103 см-2

• Orientation tolerance: ± 0.05 degrees

PRODUcTION LOcATION StavropolJobs to be created: 1,500


$44 million


$40 million

2011 2015

Project initiationJune

Market share30 % global


Olga Shpichko’steam

FOST

ERIN

G A

NEW

IND

UST

RY

Olga SHPICHKO


Olga Shpichko began working at RUSNANO in January 2008 as director for medical programs. She was appointed managing director in June 2009. Ms. Shpichko is a member of the Investment Commission of the Executive Board of RUSNANO and chairman of the Board of Directors of NEARMEDIC PHARMA. She also represents RUSNANO’s interests to boards of directors of other portfolio companies within her sphere of management.

Before joining RUSNANO, Olga Shpichko coordinated medical projects for the Federal Atomic Energy Agency of the Russian Federation, today State Atomic Energy Corporation Rosatom. From 2003 to 2007 Ms. Shpichko was senior projects manager and later general director of the Medico-Physical Center. She took part in realizing science and technology projects with the Russian Oncological Scientific Center of the Russian Academy of Medical Sciences, the Medical Radiological Scientific Centre of the Russian Academy of Medical Sciences, the Russian Medical Academy of Postgraduate Education, and institutes and businesses affiliated with Rosatom.

Olga Shpickho began her career as a systems engineer at POSITOM-PRO, a scientific-commercial organization of the Institute for Theoretical and Experimental Physics.

Ms. Shpichko graduated from the Moscow State Institute of Radio-Engineering Electronics and Automation, International Faculty of Informatics in 1988. In 2000 she earned a degree as economist from the Economics Power Institute. In 2005 Ms. Shpichko defended her PhD thesis, Optimization of Local Information-Control Centers for Environmental, Chemical, and Radiation Monitoring.

"WE ARE KINDRED SPIRITS, DEvOTED NOT ONLy TO MAxIMIzINg INCOME BUT ALSO TO RESOLvINg SOCIALLy SIgNIFICANT PROBLEMS IN RUSSIA'S PUBLIC HEALTH CARE. WE ARE HELPINg TO ESTABLISH A NEW RUSSIAN PHARMACEUTICALS INDUSTRy, RUSSIA'S BIg PHARMA."


Welcome to the team led by Olga Shpichko – the investment group at RUSNANO specializing in Russian and international projects in medicine and biotechnology.

We are young and ambitious. Among us are PhDs in technical and biological sciences and holders of CFAs and MBAs and other international degrees. Every one of our investment managers, lawyers, and analysts has gained experience in industrial projects and venture capital investments through work in manufacturing companies and large consulting and law firms. We work closely with leading scientific and research organizations, including the N. N. Blokhin Cancer Research Center and the Gamaleya Institute of Epidemiology and Microbiology, research institutes of the Russian Academy of Medical Sciences and the Bioengineering Center, and the Institute of Molecular Genetics, both research institutes of the Russian Academy of Sciences.

Our goal is to establish and expand production of innovative drugs and to manufacture advanced medical equipment. Portfolio companies in our group develop and manufacture pharmaceuticals for treating a wide range of ilnesses: infections, cancers, cardiovascular disease, and diseases in endocrinology, hematology, and the autoimmune system. One portfolio company produces equipment for cascade plasmapheresis and another, unique systems for diagnosing blood clotting disorders. In addition to our primary focus, we cooperate with leading companies in different spheres of science and technology. Through our work, RUSNANO and Rosatom will establish production

of ultradurable nanostructured wire with high electrical conductivity. These superwires have already entered history. In March 2012 the material was used in electromagnetic winding to demonstrate record induction of a magnetic field, 100 tesla, approximately two million times stronger than the Earth’s magnetic field.

At the beginning of March 2012, our portfolio held projects totaling $2.5 billion of which RUSNANO has or will co-invest $1 billion. Our 13 investment projects are being executed in Russia, the United States, the United Kingdom, Germany, and Luxembourg. They include an international venture capital fund in biotechnology managed by Burrill & Company and a strategic partnership, unique in this field, with one of the largest firms in venture investing – Domain Associates LLC. In the project with Domain Associates, from 2012 through 2015 we plan to invest in at least 20 American drug development companies. Each is in late stages of clinical trials or in the process of registering its products. Our aim is to localize manufacturing of these drugs to Russia through a new business with quality management systems that adhere to GMP standards. The transaction with Domain Associates is one of the largest ever undertaken in biotechnology.

We are not merely colleagues. We are kindred spirits, devoted not only to maximizing income but also to resolving socially significant problems in Russia’s public health care. We are helping to establish a new Russian pharmaceuticals industry, Russia’s Big Pharma.

OlGA ShpIchkO’S TEAM Cascade filtration is a high-tech procedure for selectively removing viruses and harmful proteins from the blood while retaining the blood’s beneficial components.

The new filters are distinguished by track membranes of polyethylene terephthalate with nanosized (20 nm to 100 nm) pores. They are obtained by bombarding the polymer with ions of inert gases with high atomic mass accelerated to high energies using a cyclotron. Traces left by the ions in the material (tracks) are selectively treated with ultraviolet radiation and chemical etching to create pores with the required geometric characteristics.

Cascade filtration is used to treat atherosclerosis, coronary heart disease, angina pectoris, heart failure, acute poisoning, and other diseases.

The project is at the interface of a number of high-tech fields: medicine, nuclear physics, and instrument making. In addition to its use in medicine, nanofiltration of liquid and gaseous media is finding increasing application in other industries. For portfolio company TRACKPORE TECHNOLOGY, this means a future of other applications for filtration technology based on its track membranes.

cAScADE plASMAphERESIS bASED ON TRAck MEMbRANESPORTFOLIO COMPANY TRACKPORE TECHNOLOGYwww.trackpore.ru

• Production of track membranes with pore diameters of 20 nanometers to 100 nanometers• Production of multifunctional equipment for membrane plasmapheresis, cascade plasma filtration, and other methods of extracorporal

hemocorrection


• RUSNANO• Company founders

AREA OF ApplIcATION Medicine

MARkET Specialized prevention and treatment facilities, hospitals, medical centers, and clinics


• Proprietary production technology• Simplicity of use• Mobility• Affordability

pRODUcTION lOcATION Dubna, Moscow OblastJobs to be created: 650

pROjEcT STAGES

Total budget

$91 million


$44 million

2009 2013 2015

production start upproject initiationAugust

Design capacity


5% global


In its initial stage, portfolio company PET-Technology will open positron-emission tomography centers in Bryansk, Lipetsk, Orel, Tambov, and Ufa. To provide the PET centers with the radiopharmaceuticals, the project company will establish production of isotope 18O and organize two cyclotron sites – in Lipetsk and Ufa – for production of short-lived isotopes.

PET is used for the diagnosis of cancers, including diagnosis in early stages, and for diagnosis and treatment in cardiology and neurology. Radiopharmaceuticals are selectively absorbed by tumor tissues and tissues whose metabolic activity is high. By combining into one instrument the functions of PET and computer tomography, benefits of both ensue – a three-dimensional picture of functional changes in tissue overlays a high-resolution image of the patient’s organs. PET diagnostics identify 18 percent more tumors in early stages, significantly improving prognoses and decreasing mortality.

By producing isotope 18O – which is done using low-temperature rectification in the presence of isotope exchange reactions on nanoclusters – the project will be able to meet demand from the Russian PET centers and enter the international market for diagnostic agents.

REGIONAl NETWORk OF pET cENTERS

PORTFOLIO COMPANY PET-Technology www.pet-net.ru

• Establishment of a network of regional PET centers for diagnostic procedures


• RUSNANO• RosMedTechnology• MEDILUx (Hungary)


MARkET

• Diagnostic services: patients• Isotope 18O: domestic and foreign PET centers


• Proprietary production of essential isotope 18O • Proprietary production of isotopes and radiopharmaceuticals

for domestic use and export

pRODUcTION lOcATIONS Cyclotrons: Lipetsk, UfaPET centers: Bryansk, Lipetsk, Orel, Tambov, UfaJobs to be created: 50

pROjEcT STAGES

Total budget

$81million


$41 million

project initiation

2011 2013 2015 2017

production start up

October Q4

Design capacity


(pET procedures)

NEARMEDIC will base its pharmaceutical production on Kagocel®, an antiviral drug available over the counter. Construction of the new GMP-tailored manufacturing facility will enable NEARMEDIC to remove Kagocel production from a rented facility and greatly expand manufacturing operations to further strengthen its Russian and the CIS market positions.

Kagocel is a compound of an active plant-based gossypol molecule with a nanosized polymer carrier. The joining of this small molecule to a high-molecular-weight polymer-carrier prevents rapid metabolism of the active ingredient in the organism, prolonging the drug’s pharmacological activity and avoiding toxicity. Therein lies its uniqueness. Kagocel elicits the formation of alpha- beta- and gamma-interferons in the human organism. The interferons have highly antiviral activity, effective in treatment and prevention of flu and other acute respiratory infections and in treatment of herpes infections.

Since entering the market, Kagocel’s sales have continued to rise at a faster pace that the rest of the antivirals in the Russian market. The drug is one of the top ten medicines sold in this segment.

kAGOcEl®

PORTFOLIO COMPANY NEARMEDIC PHARMAwww.nearmedic.ru; www.kagocel.ru

• Full-cycle production of innovative nanomedicines via versatile GMP pharmaceutical manufacturer


• RUSNANO• NEARMEDIC PLUS• Nearmedic International Limited


MARkET Pharmaceutical distribution companies


• Highly effective• Prolonged protection• Universal antiviral mechanism• Favorable safety profile• Low allergenicity• Lower cost of treatment

pRODUcTION lOcATION Obninsk, Kaluga OblastJobs to be created: 281

pROjEcT STAGES

Total budget

$163 million


$41 million

project initiation

2011 2013 2014 2015

production start up

Design capacity

December March

Market share 13.5% domestic

(antiviral)


This venture fund in medicine and biotechnology will invest primarily in companies in mid-stage development, facilitating transfer of Western nanotechnology to Russia and placement of contract production and services in the country through the establishment of joint businesses.

Companies developing innovative drugs, diagnostic medical equipment, and medical and industrial biotechnology will be the priorities for the fund’s investment. The products and technologies of portfolio companies will be targeted toward resolving vitally important issues for Russia’s population, particularly socially significant illnesses.

Portfolio company Hemacore is the embodiment of many years of fundamental scientific work. The company will bring to market a new diagnostic method that can forecast thromboses and potentially save millions from stroke and heart attacks. This diagnostic tool evaluates various phases of blood clotting and is without analogue in today’s medical instruments market.

The diagnostic procedure occurs in a cuvette, where the analyzer replicates the body’s natural mechanisms of blood coagulation. A digital camera tracks the blood clotting at the activator, which has a nanostructured coating of 30 nanometers to 50 nanometers that imitates the damaged wall of the blood vessel. The coating is a synthetic analogue of a phospholipid cell membrane with integrated thromboplastin protein molecules that initiates the blood clotting cascade.

The instrument can simultaneously analyze several blood samples; a diagnostic cycle requires only 30 minutes. Highly precise diagnoses, moderate test prices, and ease of use are expected to give this product a large share in the Russian market for coagulation analyzers and allow its producers to enter the international market.

Burrill Capital Fund iV, l.p.

MANAGING COMPANY Burrill & Company (BCF IV GP), LLCwww.burrillandco.com

• Facilitating transfer of technology to Russia through equity capital investmens and contract manufacturing

Blood Coagulation testing instruments

PORTFOLIO COMPANY Hemacorewww.hemacore.com

• Production of equipment and disposables for evaluating blood-clotting disorders using a new diagnostic method

Fund partners

• RUSNANO• Other investors

areas in whiCh Fund inVests

• Medicine: treatment of cancers, cardiovascular diseases, ophthalmological diseases, diabetes, psychological and autoimmune conditions, trauma, HIV infection, hepatitis, and bacterial infections

• Biotechnology

CompetitiVe adVantages

• Burrill & Company’s extensive experience and $1.5 million portfolio of medical and biotechnical venture investments

• Burrill & Company’s earnings record• Access, through Burrill, to potential co-investors and

partners for RUSNANO

Fund’s liFetime 10 years

Fund’s loCations USA, Russian Federation

projeCt stages

shareholders in portFolio Company

• RUSNANO• Medical Innovations• Sberbank Capital

area oF appliCation Medicine

market Clinical diagnostic laboratories and medical institutions. In 2008 Russia had more than 10,000 laboratories, including 66 labs specializing in coagulation diagnostics

CompetitiVe adVantages

• Simultaneous diagnosis of insufficient (hemophilia) and excessive (thrombosis) blood clotting

• Ability to forecast thromboses

produCtion loCation MoscowJobs to be created: 123

projeCt stages

total budget

$500million

total budget

$37 million

Co-investment by rusnano

$200 million

Co-investment by rusnano

$20 million

2010 2012 2015

production start upproject initiation

October

design capacity


2011 2012 2016

Final closingproject initiation

October



Brachytherapy is a form of radiotherapy for malignant tumors in which the radiation source is placed within the affected organ. The optimal dose of radiation is delivered directly to the tumor without exposing adjacent tissues and organs. Brachytherapy is used extensively worldwide; it has been used in 800 medical centers in the United States and Western Europe for over 14 years.

This project will establish domestic production of microsources, titanium capsules containing a gold wire (x-ray marker) and radionuclide 125I (iodine-125) in the form of silver iodide whose surface has been modified for better ultrasound visualization. Portfolio company will also produce nanostructured microspheres of polymer, glass, or silicon particles that incorporate atoms of radioactive isotopes. Their diameters are about 30 microns.

Microsources produced by the project will be used to treat prostate, liver, and pancreatic cancers. Prostate cancer is one of the most common diseases in the country. There are more than 2.5 million cancer patients in Russia for whom effective treatment is essential. The project has high social significance.

MIcROSOURcES, MIcROSphERES, AND cOMpONENTSFOR RADIOThERApY PORTFOLIO COMPANY NBTwww.bebig.ru

• Preparation and packaging of microsources for brachytherapy using isotope 125I• Production of nanostructured microspheres of amorphous material with isotope 90Y

BEBIG


• RUSNANO• Eckert & ziegler BEBIG• NADEx MAx LTD• Santis


MARkET Medical facilities and physicians treating patients with prostate cancer


• Products without Russian analogue• Competitive price• Minimal side effects• Shorter hospital stays

pRODUcTION lOcATION Dubna, Moscow OblastJobs to be created: 50

pROjEcT STAGES

Total budget

$30 million


$24 million

Portfolio company NTpharma will bring two nanovaccines and three biopharmaceuticals to the market. The vaccines will be used for protection against avian and human influenza viruses. A special manufacturing technology for the nanovaccines reduces the time required to obtain the drugs in industrial quantities from 60 days to 28 days, vital for development of vaccines against pandemic strains of the influenza virus.

The biopharmceuticals are designed for treatment of various types of ischemia, urogenital infections, and toxicosis and to activate the immune system.

All drugs and vaccines are exclusive developments of NTpharma.

NANOvAccINES AND bIOphARMAcEUTIcAlS IN pSEUDOADENOvIRAl NANOpARTIclES AND SElF-ASSEMblING NANOSTRUcTURESPORTFOLIO COMPANY NTpharmawww.ntpharma.ru

• GMP production of nanovaccines and biopharmaceuticals containing carbohydrate binders


• RUSNANO• Prom-Bi (technology developer)• Private co-investor




• Production cycle one-half the length of the conventional cycle• Nasal form of vaccine• Greater safety of vaccines

pRODUcTION lOcATION Pereslavl-zalessky, Yaroslavl Oblast Jobs to be created: 150

pROjEcT STAGES

Total budget

$53 million


$44 million

2009 2014 2015

production start upproject initiation

Q4

Design capacity

Q4

Q3


(prostate cancer treatment)

project initiation

2010 2013 2015 2017

production start up

Q4 Q4

Design capacity

Market share 20% domestic,

flu vaccines

Foreign antigen gene


The project is an outstanding example of Russian-British-German collaboration in innovative pharmaceuticals. SynBio will develop and bring nine drug preparations based on three technological platforms to Russian and international markets:• Sustained-release drugs containing polysialic acid – biobetters for

treatment of diabetes mellitus, Alzheimer’s disease, chronic kidney disease, and other illnesses (Polyxen® platform)

• Drugs based on recombinant human Histone H1 for treatment of cancers and other illnesses, including blood cancers (leukemia, lymphoma, and myeloma) and ischemic diseases (Histone platform)

• Cell therapeutic product for the treatment of liver cirrhosis (Gemacell platform)

The drugs in the portfolio are all in various stages of pre-clinical and clinical studies in Russia and Europe. Sales by portfolio company SynBio in 2015 are forecast at 700 million rubles (about $24 million).

SynBio has acquired a controlling interest in Xenetic Biosciences PLC. As a result, a Russian company has become, for the first time, the initiator of a new and powerful player in the international innovative pharmaceutical industry.

NANOphARMAcEUTIcAlS

PORTFOLIO COMPANY SynBiowww.synbio-pharma.com

• Production of innovative drugs and biobetters based on biodegradable nanocomposites


• RUSNANO• IceGen LLC




• Greater effectiveness of the drugs

pRODUcTION lOcATIONS Moscow Oblast, Leningrad OblastJobs to be created: 70

pROjEcT STAGES

Total budget

$109 million


$44 million

project initiation

2011 2013 2015

production start up

August December

Design capacity

Moscow based portfolio company NANOELECTRO will manufacture up to 50 tons of ultradurable cable per year at design capacity.

Production technology involves melting and serial assembly of bimetallic rough-forged materials that then pass through a deformation process which introduces niobic fibers 6 nm to 10 nm thick into the copper matrix of wire. In a 2×3 mm cross section of the composite wire that results, as many as 400 million fibers will be present. They are responsible for the extraordinary mechanical durability of the wire – 1,000 MPa to 1,200 MPa. The space between fibers is comparable to the average length of the path of electrons in the copper matrix. That achieves electrical conductivity of 65 percent to 85 percent of ultrapure copper.

NANOELECTRO has already received numerous inquiries from Russian and international companies regarding purchase of the superwire.

NANOSTRUcTURED UlTRADURAblE cAblE WITh hIGh cONDUcTIvITY PORTFOLIO COMPANY NANOELECTROwww.nanoelectro.net

• Production of ultradurable, highly conductive nanostructured electrical cable developed at vNIINM

Total budget

$35 million


$15 million


• RUSNANO • vNIINM


• Science and industry (powerful impulse magnets)• High-speed rail• Shipbuilding• Aviation and space engineering• Electronics

MARkET

• National High Magnetic Field Laboratory, Los Alamos • Helmholtz-Zentrum Dresden-Rossendorf scientific center,

Germany • Russian Railways• All-Russian Research and Development Institute

for the Cable Industry • ALPHISICA GmbH


• Durability comparable to steel• Electrical conductivity comparable to copper

pRODUcTION lOcATION MoscowJobs to be created: 80

pROjEcT STAGES

project initiation

2011 2012 2015

production start up

October December

Design capacity

Market share Wires for high-speed

railways 46% domestic

2% global


RUSCHEMBIO was one of the early projects in which RUSNANO co-invested. During two full years of operations, the company-warehouse has organized an outstanding and extremely broad assortment of reagents and developed an extensive system of express deliveries. It also became one of the first portfolio companies to turn a profit. In 2010 the company had sales of $7.3 million and net income of $0.6 million, and it paid a dividend. In 2011 RUSCHEMBIO had sales of $13.7 million with net income of $1.4 million.

More than 350 scientific and commercial organizations from 30 regions of the country routinely order materials from RUSCHEMBIO. A new form of infrastructure for the country’s innovative technology industry, RUSCHEMBIO – with fully equipped laboratories and pilot manufacturing – has supported, even made possible, work in a wide variety of areas, from R&D to commissioning production of drugs and equipment. In the next stage of development, RUSCHEMBIO will open new branches and warehouses in Novosibirsk, Nizhny Novgorod, and Stavropol. It will develop its own brand and catalog for sale of products from Russian manufacturers. And it will broaden the product assortment by including independent nanoproducers, helping them promote their goods in the market.

RUSSIAN WAREhOUSE AND cATAlOG OF chEMIcAl AND bIOchEMIcAl UlTRApURE REAGENTS AND DISpOSAblESPORTFOLIO COMPANY RUSCHEMBIOwww.ruschembio.ru

• Infrastructure project providing Russian nanoindustry scientists and other professionals access to reagents, disposables, and equipment


• RUSNANO• Company founder

MARkET

• High-tech companies• Techno parks and centers for technology transfer • Pharmaceutical companies• Research Institutes of the Russian Academy of Sciences and

the Russian Academy of Medical Sciences• Universities• Laboratories of federal oversight (veterinary and phytosanitary,

consumer protection)• Clinical diagnostic centers


• More than 17,000 products in stock• System of express delivery throughout Russia and from abroad• Availability of low-temperature and licensed reagents• Network of regional representatives

pRODUcTION lOcATIONS Moscow, Moscow Oblast, St. Petersburg, Belgorod, KazanJobs created: 35

pROjEcT STAGES

Total budget

$3million


$1,5 million

project initiation

2009 2010 2011 2015

production start up

Design capacity

Market share 15–20% domestic

www.rusnano.com

fostering a new industry - rusnano€¦ · nomic potential. rusnano’s mission ... ufa, republic...

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